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Brexit

Brexit - increased living costs

13 replies

itsawonderfulworld · 10/10/2016 15:10

Good article in the Guardian today: www.theguardian.com/business/2016/oct/10/prices-will-shoot-up-if-uk-fails-to-get-eu-single-market-access-retailers-warn

And by the BBC: www.bbc.co.uk/news/business-37605642

Retailers are already facing rising costs that may have to be passed on to consumers because of the pound’s sharp fall since the Brexit vote, which has raised the price of imports.
This is already happening. As a retailer (small UK-based business importing goods from other EU countries), we haven't had to put up our prices yet as our suppliers' UK price lists for this season were fixed before the Referendum, so before Sterling started to plummet (13% already and bigger falls predicted). But we already know that we will have to put up our prices by at least 20% for next year as our suppliers have now adjusted their UK price lists to reflect expected future currency exchange rates.

The cost of living in the UK is about to increase A LOT as we import most things. Food, clothing and fuel will become a lot more expensive in the next few years, because of the devaluation of the pound. The only winners will be exporters who actually manufacture goods in the UK, from UK raw materials - but there aren't many of those left.

And if we actually leave the Single Market, which is looking increasingly likely, then we'll be facing import tariffs on most goods too, which will further push up prices. And the British Farmers' Union warned before the Referendum that Brexit would cause increased prices of British produced food due to loss of EU subsidies.

But at least we're taking back control, right?

OP posts:
Manumission · 10/10/2016 15:12

There have been so many warnings and predictions from both sides. I'll believe things when they happen. I don't have the energy left to flap about possibilities.

itsawonderfulworld · 10/10/2016 15:17

Manumission these aren't predictions. The pound has already fallen by 13%. Our suppliers have confirmed that their UK prices are increasing for next year - those who offer price lists in £ that is. Other suppliers invoice us in Euros, and that means that their goods are already 13% more expensive for us to buy in. From next year we will no longer be able to absorb this extra cost, so our prices WILL increase by 20% (children's clothing, by the way).

OP posts:
Manumission · 10/10/2016 15:21

Ach. Let's wait and see. They might yet find the person with fat fingers Smile

melibu84 · 10/10/2016 15:26

I expected this kind of thing to happen, which is why I voted Remain. It's simple economics, and uncertainty always causes the markets to falter a bit We probably won't see the full impact of what's going to happen until Article 50 is invoked, though.

I still have not yet had a good explanation for what "taking our country back" really means yet either lol ;)

LurkingHusband · 10/10/2016 15:45

I still have not yet had a good explanation for what "taking our country back" really means yet either

I think it meant "taking our country back to the 1970s".

jaws5 · 10/10/2016 16:05

*back to the 70s" is the only thing I understand by "taking [their] country back". What a terrible future for their children...

IamWendy · 11/10/2016 16:52

There was a cost of living crisis long before brexit.

HellsBellsnBucketsofBlood · 11/10/2016 16:55

I thought we were aiming for the 1800's...

LurkingHusband · 11/10/2016 17:20

There was a cost of living crisis long before brexit.

The house was already on fire, when we poured petrol on it ...

melibu84 · 11/10/2016 17:27

LurkingHusband

Jaw5

HellsBells

That honestly just made my day LOL

IamWendy · 11/10/2016 17:56

More like if the neighbours house is on fire, leave before yours burns down too.

jaws5 · 11/10/2016 18:12

Oh yes! I forgot that experts have a bad reputation in this country now, so do facts and evidence.

littletike · 11/10/2016 18:22

Because of the effect on the pound the price of some goods that originate in the US have already past doubled in DPs line of business (sports related). It's really worrying as when you're dealing in hundreds and sometimes thousands of pounds for some of this equipment that kind of increase means that people just won't buy it/be able to afford it and will go elsewhere.

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