A recent study by the IFS says householders in the UK may be facing ‘considerable and unpredictable’ fluctuations in the price of food in the years to come, with poorer households likely to be harder hit than higher-income ones.
The report summarises the situation we find ourselves in thus: There is a great deal of uncertainty over what the nature of the UK’s post-Brexit trading arrangements will be. Decisions over post-Brexit membership of the single market and participation in the customs union will have profound effects on the price and import mix of the foods on UK supermarket shelves. It is also unclear whether sterling will depreciate further – or appreciate – as Brexit proceeds. These uncertainties over tariffs and the exchange rate mean that UK households are potentially going to be affected by considerable and unpredictable changes in food prices, with the poorest households much more exposed to this risk than the richest households.
You can read the full report here: