‘Shock after shock’: how the weaker pound could affect you
UK consumers are facing further price rises after the pound fell to an all-time low against the dollar, exacerbating the cost of living crisis. The value of the pound has plummeted following Kwasi Kwarteng’s mini-budget.
Weaker sterling means imported food, petrol, cars and consumer goods will be more expensive, as firms pass the price hikes on to consumers. It is will also drive up the cost of mortgages and foreign holidays.
UK supermarkets import around 40% of their food, according to the British Retail Consortium, so the pound’s drop in value means grocery prices are expected to rise, contributing further to the cost of living crisis.
Kris Hamer, director of insights at the BRC, said: “It is inevitable that unless these pressures ease, some of the costs will have to be passed on to consumers in the form of higher prices.”
As sterling registered steep falls in early trading on Monday, Belfast restaurant Mourne Seafood tweeted: “Well, that’s the Californian wines off the wine list.”
<p lang=«en» dir=«ltr» xml:lang=«en»>Well that’s the Californian wines off the wine list Read more on theguardian.com
