Retailers Warn of Brexit Price Hikes

The British Retail Consortium said that striking a good Brexit deal could keep prices in the shops lower.

17:36 11 October 2016

The British Retail Consortium has warned that failure to strike a good Brexit deal in 2019 could see tariffs on clothes rise to up to 16per cent and on meat of up to 27per cent. It added that “years of deflation” would mean retailers would have to pass these import costs on to consumers and that overall pries would rise and shopkeepers would struggle to absorb those higher prices.

 

The BRC singled out other items including Chilean wine, where the BRC said that tariffs would rise by 14per cent. It added that some products, such as New Zealand lamb, could become cheaper outside the EU as they are subject to EU import quotas.

 

The fall in the value of pound since Brexit vote already means that any goods bought in from outside the UK will cost more.

 

BRC chairman Richard Baker said: "The retail industry is the UK's biggest importer and has huge experience of importing from every corner of the world. We will be engaged in a constructive dialogue with government that will bring our experience to bear on the Brexit talks to the benefit of everyone in the UK."