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Brexit blamed for UK food price inflation

Wednesday, 31 May 2023 9:05 AM [ Last Update: Wednesday, 31 May 2023 10:31 AM ]

The paltry purchasing power of the Pound. March 16, 2017 (Real Business)

The UK has the highest food inflation rate in the industrialized world, with Brexit, which has brought about extra barriers on food imports from the European Union, identified as one of the major causes.

It's no secret that you don't get much for a pound in Britain these days and households are the ones feeling the pain.

The food price they went really up and up, you can't buy lots of stuff now, you need to reduce [sic].

Shopper 01

UK food price inflation, the Brexit connection

Brexit blamed for 3rd of UK food price inflation

The UK has the highest food inflation rate in the industrialized world.

It is absolutely increase in high level its increased a lot. Every day you will go to supermarket, 10 (or) 20 P every single day almost.

Shopper 02

At more than 19%, food inflation in the UK remains at the highest levels in over four decades meaning an even greater squeeze on the budgets of low income families.

Jeremy Hunt ready to risk recession to bring inflation down

UK’s Jeremy Hunt ready to risk recession to bring inflation down

The UK Chancellor of the Exchequer has said that he is prepared to accept a recession if it brings down inflation.

One of the drivers of inflation, new research shows, is Brexit.

What is clear, and I would agree with that, is that Brexit has lowered people's living standards. We voted for this nonsense and now people are beginning to regret it. But it's a little bit too late.

Professor Keith Pilbeam, London School of Economics

The government admits the costs are getting out of control and is working with food producers, farmers, and, supermarkets, to explore ways to reduce the pressure on households, and to discover whether middle companies are taking out too much profit.

BoE raises interest rates, 12th time in 2 years, to tame inflation

Bank of England raises interest rates for 12th time in 2 years to tame inflation

The BoE has again raised its benchmark interest rate by a quarter of a percentage point, which now stands at a 15 year record high of 4.5%.

Trade Unions say higher costs are not trickling down to the workers. While there have been strikes and higher pay settlements with some sectors, the gap between pay and price increases is substantial.

What's happening, of course, is this year people have taken wage rises to upper low inflation.

That means that their living standards are falling. They're going to try to catch up.

And that's why it's going to be more persistent than a lot of central banks thought and a lot of people in the market thought.

Professor Keith Pilbeam, London School of Economics

UK ‘already in recession’ as Bank of England raises interest rates

UK ‘already in recession’ as Bank of England raises interest rates

The BoE on Thursday decided to increase the interest rate by 0.5 percentage points.

The UK central bank has increased interest rates 12 times hoping to tame inflation, but the rate is still higher in Britain than in all G7 nations and that has meant more people falling on hard times.

Today one in every seven Britons is skipping meals due to the rising cost of living.

So many people not being able to afford food or having to skip meals is a sobering thought in a wealthy economy such as that of the UK but that is the reality of the inflation crisis and of post Brexit Britain.