Arab Times

British food prices rise due to plunging pound

Happy Brexit Christmas

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LONDON, Dec 1, (AFP): The bill for Christmas dinners in Britain is mostly unchanged from last year, experts said, even though the higher price of imported raisins will hike the cost of Christmas puddings by 21 percent.

But the respite may be shortlived as supermarke­ts, which are locked in a bitter price war, are likely only delaying until next year Brexit-induced increases due to the plunging pound, they warned.

“The overall cost of our favourite meal is set to be more expensive, up by 1 percent yearon-year, but still lower than in 2013 and 2014,” a study by British market research firm Mintec found this week.

Voted

Since Britain voted in June to leave the European Union, there has been an 18 percent fall in the value of the pound against the euro and dollar, leading to an increase in the cost of imports.

So far supermarke­ts are taking the hit, with the price of celebrator­y drinks such as Champagne from France and Prosecco from Italy staying stable.

“There hasn’t been much impact so far despite the falling exchange rate,” says Toby Magill, an alcohol expert at market research company IRI.

“The retailers haven’t put up their prices.”

With desserts, the plummeting pound has seen the cost of British-made Christmas pudding soar by 21 percent.

The increase is due to the higher cost of ingredient­s: raisins, butter, flour and sugar, according to the study.

But the centrepiec­e of a traditiona­l Christmas dinner — the turkey — has seen a 2-percent price fall since last year when prices were higher on the back of fears over avian flu, it said.

Expected

Food retailers are expected to see sales growth of 2 percent during the festive season compared to last year, an analysis by Fung Global Retail and Technology predicted.

According to the October report, the sector has registered “five consecutiv­e months of positive growth... and growth has strengthen­ed sequential­ly over the most recent three months.”

“We anticipate no drag on retail sales this Christmas from the Brexit vote in June,” the report adds.

Such a scenario could benefit national producers who are trying to take advantage of the fall in the pound, by promoting local foodstuffs produced and sold in sterling.

The National Farmers Union has launched a campaign calling on citizens to support British products, perhaps tapping into an uptick in patriotism brought on by the Brexit referendum.

The Union is ready to direct Britons towards nearby turkey farms, as well as local producers of cheese and sparkling wine.

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