Expect other cynical firms to try the same trick, say experts

CONSUMERS face an epidemic of price hikes blamed on Brexit following the row between Unilever and Tesco, experts warn.

Retail analysts fear manufacturers are lining up to impose price rises blamed on a fall in the value of the pound since the referendum.

Sterling has fallen about 18 per cent against the US dollar and 15 per cent against the euro since the vote to leave the European Union.

The slide has boosted exports but also driven up the cost of imports – setting the scene for higher prices in supermarkets and on the high street.

Britons already pay more for everything from gadgets such as Apple’s iPhone to games consoles.

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products and designer clothes are also more expensive as global brands see Britain as a ‘Treasure Island’.

It is feared the cost of everything from clothes, wine and food to televisions, dishwashers and washing machines will rise in the coming months.

Business expert Professor Andrew Fearne, of the University of East Anglia, said: ‘The problem is that some companies will use the exchange rate as a vehicle for negotiating price rises that are avoidable.

‘What we are seeing here is the thin edge of a very long wedge in the world of fast-moving consumer goods.’

But, as Unilever has found, firms that try to push through price rises on the back of Brexit risk a backlash. Ian Wright, of the Food and Drink Federation, which speaks for manufacturers, warned of more Brexit-induced price battles.

He said Unilever and Tesco’s confrontation was ‘indicative of what is to come when rising manufacturing costs come up against retailer commitments to low prices’. Steven Dresser, of Grocery Insight, said price hikes were likely in January as retailers look to pass on higher costs after Christmas.