Is Brexit To Blame For Rising Prices?

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Last week there was great consternation when Tesco fought across the range 10% price rises from Unilever. That was on 200 top brand products such as Ben and Jerry’s ice cream, Flora spread, Hellman’s, Bovril, PG Tips and Stork to name a few. Tesco threatened to stop selling Unilever products entirely and it wasn’t long before Unilever and Tesco came to an agreement.

Anglo-Dutch company Unilever blamed the UK referendum vote to leave the European Union and the falling rate of the pound. As most of Unilever’s products are made in Britain they wouldn’t be affected that much by the falling pound anyway.

Apple have increased the price of their Mac Pro by £500 and an Holiday Inn gym is blaming Brexit for them not giving out towels for their gym customers to freely use. Now Typhoo tea are claiming a 50% rise in their import costs due to Brexit. Hang on, the pound has fallen by 18% not 50% and as the price of importing tea is only part of the manufacturing cost either there are other factors involved in this price rise or somebody is taking the whiss.

These aren’t the only companies threatening price rises, but I ask myself is Brexit entirely to blame?

I think not when you look at things logically. First of all, for several years economists have been claiming that the pound was over valued. The bank of England has been printing more and more money to keep the pound buoyant instead of letting it fall to it’s natural level.

Investors have been buying currency other than the pound which is pushing the exchange rate down. That is because they are worried over Brexit, but that won’t be helped by the doom and gloom coming from the remainers. Mainly from irresponsible politicians who pretend to believe in democracy until democracy doesn’t agree with them.

Both sides of the referendum were warned that there would be price rises if we voted out. We Brexiters were ok with that, we wanted our sovereignty and control of our laws and borders back.

On the bright side our exports are now cheaper due to the falling pound and that is encouraging more of our products and services being exported to other countries. That should help our manufacturing and service industries and create more jobs. Britain’s economy is booming in spite of the scaremongering we endured from politicians, economists and businessmen with a vested interest in staying in the EU. In time as we are able to make our own trade deals it’s possible that many prices will come down as we trade further afield than the EU, coming out of the common agricultural policy should also save taxpayers money, so long term we could actually be better off.

Because of the lower exchange rate it’s true that holidays abroad are costing more, but we have some beautiful countryside and coastline so perhaps it will be better for all of us if we support our British holiday resorts. I spent a week at Great Yarmouth on the Norfolk coast in July. There are some lovely beaches and the weather was glorious. My daughter travelled round Cornwall in August. She had a fabulous time, just as good as one of the many holidays abroad that she has had and much cheaper.

The other side of the coin is that because of the exchange rate it is cheaper for those coming to the UK for vacations or business. That can only be good news for the British economy.

In conclusion, I believe that although Brexit may be the cause of some price rises now and in the future there are some who will take advantage and use Brexit as an excuse. It seems lately that Brexit is getting blamed for everything that goes wrong, especially by those who want to remain in the EU.

British Common Sense Saving Money

You’ve got to remember that in recent years there have been price wars between the large supermarket chains and little or no inflation. Budget chains like Aldi and Netto have become popular and can save a lot off your household shopping if you are not bothered about buying leading brands. Then of course you don’t have to buy expensive Apple products lol.

To save money you can walk short distances instead of driving or using public transport, good for your health as well as your pocket. Check out online voucher sites for some good savings.

Whenever I’ve needed to budget I look at what’s in my shopping basket. It’s surprising how many things that you can live without if you try. I swap out branded products for supermarket own brands which are often just as or almost as good. Check out the reduced areas, promotion ends and dumpbins, it’s surprising how much you can save if you keep your eyes open..

Tea going up 50%, that’s a joke when you look around the supermarket shelves and see half price offers or 50% extra free. Currently packs of 240 PG Tips are half price, £3.24 at the Co-op. There will always be special offers so take advantage of them.

Most supermarkets change their offers every 3 weeks so take notice and buy products when they are at their cheapest. I buy enough to last a couple of months knowing that the same or a similar offer will come round again. That way I save a small fortune. I haven’t paid the full price for tea, coffee or several other of my favourite products for years.

Another way that I’ve saved money is by allowing myself the same amount of cash every week for grocery shopping and to live off instead of using my debit or credit card. It makes me more aware of how much that I spend and most months I save between £100 and £200 by using cash. Brexit price rises won’t affect me all that much and neither will they affect you if you think about what you are spending.

Even if prices rise through Brexit there are ways to offset it and make getting out of the EU a victory for good old British common sense.

 

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