The world is about to change forever for residents of the United Kingdom with Brexit meaning a move away from European control in 2019. Already since the decision was made after the referendum in the summer of 2016, there has been an impact on the price of all sorts of commodities and households in the UK have been told to prepare for more price rises on certain staples.
Petrol was at a two-year high at the beginning of 2017 and that is just one area where the British are being hard hit since the pound was affected by the decision to leave the European Union. On average we’re now paying 15p a litre of petrol more than at the beginning of 2016, and prices are due to rise even further with the higher oil prices allied with the weak pound causing a perfect storm for consumer price rises.
It isn’t just drivers who are being hard hit however, with food costs continuing to rise at a steady rate. There has been an increase in the cost of staple grocery items over the last 6 months and it is starting to have an effect on how people conduct their regular shopping. Fuel and grocery sales have already slowed down to their lowest rate in almost two years and the cost of imports to the UK is likely to continue to rise, adding to the cost.
The only bonus at the moment for consumers in the UK is that for certain sectors, especially footwear and clothing, there will be competitive price drops to try and keep the consumer active. Although this is good news for the consumer, there is only so long the companies themselves can keep up that sort of tactic before it affects their bottom lines, and overall the immediate future isn’t a bright one for the UK economy.
The affect of Brexit might mean that households in the short-term require some more of a financial assistance to get through, until stricter budgeting plans can come into place. With that in mind, it would be beneficial to begin saving money, if you haven’t started to do so already, budget to a strict degree, leave out the luxuries you can afford to, and if absolutely necessary, utilise short-term financial assistance to get out of any sticky spots, as long as you can afford to pay back shortly. Brexit will make a huge difference to all of our lives, and the price rise is only the beginning.