The affordability crisis is about more than prices

[CAMBRIDGE] Governments around the world are struggling to devise a sensible approach to managing inflation and disruptions to production and the supply of basic goods.

The UK Treasury, for example, has just issued a proposal to encourage supermarkets to cap prices on essentials (such as bread and milk) in exchange for loosened packaging and environmental regulations.

At first glance, the policy appears pragmatic and compassionate. But look beneath the surface, and you will find an unwillingness to confront the structural drivers of rising costs.