A note of caution as the pound takes a hit
WHAT does the weak pound mean for the cash in your pocket?
Sterling’s drop in value following June’s Brexit vote has been great news for British exporters ... but holidaymakers are tearing their hair out. So how will it affect you? From filling your fuel tank to doing your weekly shop, here’s what you need to know.
Will my car be more expensive to run?
Motoring organisations have warned drivers to expect rising petrol prices. The RAC has said the fall in the pound’s value would lead to an increase in the wholesale price of fuel.
Will it become more expensive to buy a home?
Some experts have suggested the lower value pound could tempt more overseas investors into the UK housing market, as property costs could appear relatively cheap to them.
If so, there will be a knock-on effect for British buyers.
How about my regular shop?
The recent Marmitegate dispute involving Tesco and Unilever prompted speculation about the future direction of prices, as Tesco momentarily grappled with a shortage of store cupboard staples.
Meanwhile, the consumer price index (CPI) rate of inflation increased to 1% in September – its highest level in nearly two years.
The main upward pressure on CPI came from a jump in clothing and footwear price tags – especially women’s fashion.
The pound’s slump is expected to have an impact on import costs, which could lead to further increases at the tills.
And there could be a round of price hikes in January if retailers look to pass on higher costs once Christmas is out the way.
What about exchange rates for people heading overseas?
Many holidaymakers have been receiving less than one euro for their pound in recent weeks. Foreign exchange firm FairFX reported that some tourists were being offered as little as 10.88.