UK supermarket prices are set to rise by at least 5% over the next 6 months a as result of Brexit according to the former boss of Sainsbury’s.
Justin King who ran Sainsbury’s for a decade until stepping down from the role in 2014 thinks that, after years of the cost of the weekly shop barely moving, we should expect to see inflation return.
Mr King told Newsnight on the BBC that recent crash in the value of the pound may cause “a profound change” for British supermarkets.
He told BBC Newsnight:
“Something of around 40% to 50% of what we buy in the shops is sourced abroad in a currency other than the pound, and with the current rates of exchange we could expect that to be about 10% more expensive in a year’s time. And if that’s about half of what we buy, that means something of the order of 5% inflation.”
The rapid decline in value of the sterling since the decision to leave the European Union has reflected on various price-hikes in foods due to the increased costs associated with imported ingredients and packaging. Most notably the recent ‘Marmitegate’ or ‘Marmageddon’, terms used to describe the proposed inflated costs of Marmite and the prospect of removing the product from UK shelves.
Mr Kings view was also supported by the director-general of the Food and Drink Federation, Ian Wright, who told the BBC prices could increase next year by between around 5% and 8%.
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