No surprise there.
"Sooner or later, the downward pressure on the pound since the UK's vote to leave the European Union is expected to lead to upward pressure on the prices of most things we buy.
Brexit, as we have been told by the prime minister, means Brexit. But inflation also means inflation.
The pound has repeatedly lurched lower in value since the outcome of the June referendum and is now the world's worst performing currency of 2016. Against the dollar, it is now worth 20% less than it was before the vote, and that fall is unlikely to be reversed in a hurry.
The basic laws of economics dictate that this will translate into higher inflation: foreign firms exporting goods to the UK will continue to charge the same amount for them in euros, dollars or whatever, but they will cost more in sterling when the prices are converted.
That goes for finished goods, such as food and drink or clothing, but also for raw materials that are processed here, such as car parts. Global supply chains mean that more than 50% of the components in cars "made in the UK" are actually sourced from overseas."
http://www.bbc.co.uk/news/business-37676869
Luckily the members of GD had advance warning.
"Sooner or later, the downward pressure on the pound since the UK's vote to leave the European Union is expected to lead to upward pressure on the prices of most things we buy.
Brexit, as we have been told by the prime minister, means Brexit. But inflation also means inflation.
The pound has repeatedly lurched lower in value since the outcome of the June referendum and is now the world's worst performing currency of 2016. Against the dollar, it is now worth 20% less than it was before the vote, and that fall is unlikely to be reversed in a hurry.
The basic laws of economics dictate that this will translate into higher inflation: foreign firms exporting goods to the UK will continue to charge the same amount for them in euros, dollars or whatever, but they will cost more in sterling when the prices are converted.
That goes for finished goods, such as food and drink or clothing, but also for raw materials that are processed here, such as car parts. Global supply chains mean that more than 50% of the components in cars "made in the UK" are actually sourced from overseas."
http://www.bbc.co.uk/news/business-37676869
Luckily the members of GD had advance warning.
