Brexit price rises ....

[LurkingHusband]

I thought a thread for people to post details of price rises that can be attributed to Brexit might be interesting.

so:

Microsoft (22%)
VMWare (15%)
HP (10%)
Lenovo (10%)
Apple (20%)

For now, I'm not adding in suppliers that have moved from charging in sterling to Euros (strangely not dollars ). But if that seems a trend, maybe they should be added in ?

It won't be 10-20% across the board (even the most pessimistic outlooks don't foresee a rise in inflation above 5%, at least not in the short to medium term).

But I think many people have forgotten what high inflation - and high interest rates - look like. And they are not going to like it.

The truth is no-one knows what it will be - expect up.

The shift away from sterling will have a spiralling effect. If less business is done in sterling, then it becomes less attractive as a currency for the money markets to play in. Despite what misty-eyed Brexiters are trying to sell, there's nothing intrinsically special about sterling. It's just another currency. As that happens, it will become worth even less, as a result of it's volatility.

There's are probably a lot of people who have no idea that in the 1970s, when we had double-digit inflation, the UK was effectively bankrupt, and had to go cap in hand to the IMF. Something I always thought of when the Greek crisis was in the news.

One thing that it's worth keeping an eye on, is that figure of 10%. When I say keep an eye on, I mean filter all business news against it. I'm waiting for a 10% reduction in workforce, or similar. Because it will happen . Just as there are many ways to skin a cat, there are many ways to add up to 10%.

From this thread, anyone would think prices had never gone up before 2016!

Just type in 'skyrocketing price rises' and any other year of your choice into a search engine. Et voila. If I follow this thread's logic but in reverse, it must be all the fault of us being in the EU at the time.

www.huffingtonpost.co.uk/2015/09/02/office-of-national-statistics-food-drink-prices_n_8075508.html
Cheese 15% in a year. Dry pasta 19%. I love cheesy pasta and was quite cross with the EU about this.

www.theguardian.com/business/2010/jun/14/commoditries-coffee-prices-rising-sharply
Coffee up 20% in a WEEK. God, the EU took its eye off the ball that week.

www.independent.co.uk/life-style/food-and-drink/news/first-petrol-then-energy-ndash-now-food-prices-skyrocket-2166538.html
Petrol, energy and food. Up, uppity up up in 2011. Bloody EU.

Etc.

Prices sometimes rise suddenly even at times of low inflation, usually because of a sudden change in world market prices.

What's different this time is that all imported commodities have simultaneously got much more expensive, at a time of prolonged slow wage growth.

My tank of petrol tipped over the £50 mark today for the first time in years! Drove off the forecourt muttering brexit bastards under my breath! Makes me so mad! Yet, I live on the outskirts of Brussels and petrol prices here have increased as well......that cant be due to Brexit.

I live on the outskirts of Brussels and petrol prices here have increased as well......that cant be due to Brexit.

I hope you're not a maths or economics teacher .. Oil prices have gone up a little bit in dollar terms, a bit more in Euro terms (due to a roughly 5% depreciation of the euro vs the dollar in the last few months), and an awful lot more in sterling terms, due to a >20% fall against the USD.

Look at the bit in bold at the start of my post, where Brexit is blamed for patrol increasing. I pointed out that the price rise isn't due to Brexit as it is happening in mainland Europe as well. Perhaps you need to brush up on your comprehension a bit?

I pointed out that the price rise isn't due to Brexit as it is happening in mainland Europe as well. Perhaps you need to brush up on your comprehension a bit?

Huh? Oil is an international commodity traded in dollars. As such, a 20%+ devaluation in sterling will cause the oil price in pounds to rise by 20%+.

In the same way, the recent approximately 5% devaluation of the euro versus the dollar will have increased euro-denominated oil prices by around 5%.

All other things being equal.

I am self employed. My prices are going to go up in January.
Because that's the time in the year when I increase my price (diferent issues there incl the fact ythat for a very long i underpriced myself).
But also one part will be linked with the fact my supplies are more expensive to buy and I need to reflect that.

I suspect this will be the case for most products. Some prices will have increased anyway.
Some will increase because the overall cost of production has increased.
It is just easier to say it's because of brexit, increase it a bit more to that margins are a bit bigger (esp for suppliers of supermarkets who are known to have very little to play around with anyway).
And yes some ion the middle will take adavantage (just it happened with the Euro).
It is worth remembering though that it is very eaasy to check if prices are increase world wide or just 'for Britain/in pounds' and that, after a few years, prices did levelled down with the Euro too.

The technology increases have nothing to do with Brexit though.
Apple and microsoft have brought out new designs to their products and naturally prices rise as the cost of research and development is passed onto the consumer, it's common business practice with all technology.
That is why it's cheaper to buy these things when they have been out for a while and prices drop once the costs have been recouped.
I thought everyone knew this.

zombie if I might point out. Producing stuff in the UK wouldnt stop the price increase, even if we had the skills and the manufacturing tools.
This is because the raw materials are still very likely to come from abroad anyway.
And because the cost of production is much higher here than in china etc.. (hence the reason why it is all coming from there rather than staying in production in the uk)
.
So yes we can try and produce it all here. It will still be more expensive.

But by how much? "The prices have increased" could mean by 1%, it could mean by 100%. For your argument to be convincing you need to show us that the prices rises in Brussels are comparable to those in the UK.

Sorry that was to scaryteacher

Earl Grey up 10% in Whittard :(

And because the cost of production is much higher here than in china etc.. (hence the reason why it is all coming from there rather than staying in production in the uk)

China is actually beginning to export production to countries where it is cheaper, for instance to the developing economies of South East Asia, such as Cambodia. Almost certainly now British investment is being scaled back, and meted out according to Pritti Patels short term conservative values, Burma too will turn to China to aid it's development. These two countries were the richest in South East Asia prior to their respective political armageddons, their potential is huge. China is now moving up the value chain. The global economy is evolving all the time. This was not the time to throw all the sources of competitive advantage we had in it, financial services, science and technology, all especially strengthened by EU membership, up in the air.
.

I've increased all prices in my business and blamed them on brexit too

Sterling on a par with Rupee and Peso ...

Microsoft periodically assesses pricing of products and services across the globe to ensure there is reasonable alignment across the regions. This change to Azure prices is an outcome of this assessment. Microsoft previously announced British pound price changes to harmonize pricing for enterprise software and cloud services within the EU/EFTA region, effective January 1, 2017. This email is to confirm those previously announced changes to Azure pricing in British pound.

Starting January 1, 2017, British pound prices for Azure will increase by 22 percent to more closely align to euro pricing. Even after this adjustment, Azure customers across the region buying in British pound will find Azure offerings highly competitive.

Similar Azure price adjustments are being communicated to Azure customers in other markets. Azure prices in Indian rupee, Argentine peso, and Mexican peso will increase, and Azure prices in South African rand and Indonesian rupiah will decrease to realign to global levels.

The following explains how this change impacts existing Azure customers in volume licensing.

Enterprise Agreements (EA) or Enterprise Subscription Agreements (EAS), Microsoft Products and Services Agreement (MPSA), or Server and Cloud Enrollments (SCE)
Customers or partners who purchased Azure within an EA, EAS, MPSA, or SCE agreement have price protection on currently offered Azure services and will receive the lower of their baseline price or the new market price. A customer’s or partner’s baseline price is the price at the beginning of their Azure agreement or the price a new Azure service was made generally available. If the new market price is higher than the customer’s baseline prices, they may see an increase up to but not above their baseline prices. New Azure services will be priced at the then-current pricelist price.

Pay-As-You-Go subscriptions on the Azure website
Customers under the Pay-As-You-Go model enjoy the benefits of no minimum purchase requirements and have flexible pricing. For these customers, prices will increase effective January 1, 2017. Customers purchasing Azure in British pounds will see pricing at levels similar to Azure pricing in euros on the Microsoft Azure website.

Azure in Cloud Solution Provider (CSP) program
In CSP, end customer pricing for Azure services is determined by the channel partner. Microsoft pricing to the CSP partner is under the Pay-As-You-Go model with the benefits of no minimum purchase requirements and flexible pricing. For CSP partners, British pound prices will increase effective January 1, 2017, to levels commensurate to Azure prices in euros.

Azure purchased via Open
Consumption rates will increase effective January 1, 2017, to the new pricing in British pounds, which will be at levels similar to Azure pricing in euros on the Azure website.

Prepaid subscriptions on the Azure website (retired for new customer sign-ups as of October 1, 2016)
For previously offered subscriptions, the prepaid amount, discount, and terms remain unchanged. Consumption rates will increase effective January 1, 2017, to the new pricing in British pounds.

If you have questions, please contact us.

My husband's jumper from john Lewis (it's a silly family joke that I replace the exact same one in a different colour each year at Christmas). Has been £78 for past 2 or 3 years (how sad am I). Is now £85. I still bought it, through gritted teeth...

The basics chocolate I use for cooking has gone up from 30p to 45p.

The butter I buy has gone up 10 percent. Having said that, it's still not the highest its been over the past few years.

Meglet - devastated by the chocolate price rises, although I don't think we can blame it all on Brexit. Our currency relative to other currencies of course contributes to the price we pay but there are global issues going on outside our control (like size of cocoa bean harvests, sugar production volatility etc)

www.wsj.com/articles/higher-costs-bite-chocolate-makers-1468280462

www.thisismoney.co.uk/money/bills/article-3359619/Price-chocolate-soar-coming-years-thanks-production-shortages-growing-taste-cocoa-globe.html

This is quite interesting

www.kantarretail.com/brexits-impact-on-the-british-fmcg-retail-landscape/

news.clal.it/en/brexit-effects-dairy-market/
(Ireland the big loser and Aus/NZ the big winner post Brexit for dairy)

And this, written 28.9.16, which makes it clear that again, that Brexit has not helped prices but there are other factors too at play which would have impacted prices regardless (eg. sea lice and infectious salmon anaemia affecting salmon production...!)

www.yourpsl.com/short-term-impact-food-prices-result-brexit/

This is the conclusion to the report above:

Over the past 2 years the UK has benefited from food deflation, however the UK economy is now entering uncertain times with the impact of the $ and €; this, along with environmental factors, makes the short to long term difficult to accurately predict. Since the result, markets have started to recover albeit slowly with the £ recovering around 3% of its initial loss against both the $ and the €. Predicting a % increase in the coming months is difficult with so many factors affecting the food we purchase. Taking all these factors in to account we believe overall food prices will increase in the next 6-12 months by around 2% to 3%.

www.theregister.co.uk/2016/12/12/higher_tech_prices_are_here_to_stay_its_mr_farages_new_britain/

One of the UK’s biggest slingers of print services has warned customers it can no longer afford to fully soak up rising prices from printer hardware makers, which jumped after the EU referendum and now look like permanent mark-ups.

(contd)

Tesla Motors is bumping up its vehicles' prices in the UK by five per cent, purportedly because of currency effects post-Brexit.

www.theregister.co.uk/2016/12/23/tesla_price_increases_2017/

My yearly subscription for online backup has just renewed. It's paid in dollars and the $ cost hasn't changed in 7 years. It cost me £34.15 in 2009, £38.44 in 2013, £39.50 in 2014, £41.49 in 2015 and it's just renewed at £48.98.