Grocery Prices Rise and UK Shoppers are Feeling The Bite of Brexit
In July the cost of a basket of popular supermarket items rose by 1%, which is the second monthly increase in a row as the fallout from Brexit hits the prices on the high street according to a comparison website.
For years there have been falling prices due to increasing competition among the large supermarket chains and little or no consumer inflation. However, grocery prices are set to rise as the Pound Sterling weakens after Britain voted to leave the European Union, which in turn made imported goods more expensive.
Since the vote on June 23rd, Sterling has dropped about 10% against the euro and the dollar.
The comparison website, mySupermarket.co.uk said that the cost of 35 popular products in july was 83.44 pounds which has increased from 82.83 pounds in June.
Products like pasta, which rose by 10%, onions that rose by 9% and pasta sauces that rose by 6% led this increase.
However, the basket of products is still 2.5% cheaper than what it was a year ago.
MySupermarket is number 3 in Britain as an online grocery retailer in terms of traffic. The site is third to Tesco and Asda. The website have said that they track prices for almost 5000 products across all of the big chains, which also includes Morrisons, Sainsbury’s, Ocado and Waitrose.
The annual consumer price inflation, which was zero last year, was up to 0.5% in June. This is the highest it has been since November 2014.
As Britain continue to workout the Brexit move, it does seem that consumers will be feeling the pinch if prices continue to rise.