According to a new BBC report, many Britons feel they have to watch the pennies after recent inflation rises and years of flatlining wages. This extends to their supermarket shop, with four in 10 people reporting they are concerned about the cost of food. Against this backdrop, grocery giant Tesco has joined the discount retailers, with the launch of “value-orientated” chain Jack’s. So it will surprise many people that in relative terms, the British grocery shop remains one of the cheapest in the world.
Britons spend an average of 8% of their total household expenditure on food to eat at home. This is less than any other country apart from the US and Singapore, according to data from market research firm Euromonitor.
Food spending varies considerably around the world. Greeks spend 16%, while Peruvians spend 26%. Nigerians spend the most on food in relative terms – 59% of their household budget.
However, there are growing concerns that supply chain impacts through increases in extreme weather conditions and the impact of Brexit have the potential to increases costs. If supplies are disrupted immediately after Brexit and duties are increased on EU imports, which account for about 30% of the food eaten in the UK, the increases could be significant.
The UK should expect to see “a pretty significant increase in the cost of fruit and veg, the cost of meat and the cost of dairy products” If there is a “no-deal” Brexit, according to the ex-boss of Waitrose and former Conservative trade minister, Lord Price.
However, we do not yet know with any real certainty what the impact of Brexit will be on food prices. Another suggestion is that duties on food imported from outside of the EU will be lowered and that the UK will start to grow more at home.
Source: BBC News. Read the full news article by Ratula Chakraborty & Paul Dobson here: BBC News