BREXIT price rises

Conrad

SunReader wrote: »

Even if we get good terms the uncertainty and delays will kill a lot of business for us.

r:

Nonsense, business finds a way, all sorts of opportunities are showing themselves, you'll see.

Change is good for us and leads to innovation, stop being so afraid of life

michaels

Generali wrote: »

Items that are:

1. Imported
and
2. The cost of producing the product is closely related to the price
and
3. Traded widely so the UK consumer pays close to the world price

Are the things most likely to rise in price the most. Unfortunately that is likely to be stuff that's hard to store like fuel and food.

FWIW the UK imported about $663,000,000,000-worth of goods in 2014. At an FX rate of $1.50 to the quid, as it was as I was travelling to work on the morning of the Brexit vote, that costs UK PLC £442,000,000,000.

At the current rate of $1.32 those imports cost about £500,000,000,000 so given that there are about 26,500,000 households in the UK, the UK's import bill just went up by about £2,500 per household on average.

Over time that extra cost will fall as people start to substitute imports with domestically produced stuff and simply consume less (a lower standard of living is a necessary and inevitable result of this sort of fall in the FX rate in a net importing country).

As a thought experiment, think about your mobile phone. It is impossible to replace your mobile with one produced in the UK when time comes to replace it. If the price has gone up by 10% maybe you make your old one last an extra few months (so you use a less good phone for longer: a reduction in your living standards) or you pony up more for a new phone and buy less of something else (again a reduction in your living standards) or you save less money (a reduction in your future living standards).

Shall we look at a graph of the GDP/USD exchange rate over the last 20 years? WE have frequently seen larger changes over a period of a few months without all immediately feeling super rich or flat broke.

I am still wating for the 3p/litre petrol price rise that was 'definitely' coming due to the Brexit change in exchange rates - prices have not yet shifted at all at my local petrol station.

wotsthat

michaels wrote: »

Shall we look at a graph of the GDP/USD exchange rate over the last 20 years? WE have frequently seen larger changes over a period of a few months without all immediately feeling super rich or flat broke.

Exchange rate fluctuations are part and parcel of life. This one is odd because the UK population voted to pay more for their stuff.

michaels wrote: »

I am still wating for the 3p/litre petrol price rise that was 'definitely' coming due to the Brexit change in exchange rates - prices have not yet shifted at all at my local petrol station.

Oil price has fallen since the referendum and pump prices are static. Go figure.

CLAPTON

wotsthat wrote: »

Exchange rate fluctuations are part and parcel of life. This one is odd because the UK population voted to pay more for their stuff.

actually 'remainers' voted for all UK businesses future profits and dividends to flow overseas so the future would have been increditable bleak with devastating impact on the young and old alike.

fortunately the majority voted for retaining this future cash flow by accepting some short term discomfort.

ballisticbrian

Brexit hasn't happened yet.


But I am absolutely sure that when it does, everything will be blamed on it.


It's a little bit early to start on doing that though.

wotsthat

CLAPTON wrote: »

actually 'remainers' voted for all UK businesses future profits and dividends to flow overseas so the future would have been increditable bleak with devastating impact on the young and old alike.

fortunately the majority voted for retaining this future cash flow by accepting some short term discomfort.

How many people do you think voted on this basis? I'll lend you my fingers once you've used yours up.

If the UK has been sold off one piece at a time with Sterling being stronger every day for the last 30 odd years what do you think will happen now we've got a sale on?

BobQ

DollarSaver wrote: »

I am trying to figure out what I should buy at this time in order to try and minimize the almost certain increases in prices of everything.

Everything we now import has cost more as the pound has fallen so there will be a knock on. ..................

It is inevitable that prices will rise. Those hardest hit will be those least able to cope with the increases, But if they voted Leave then they deserve little sympathy if they now complain about the impact.

There is little point in stockpiling goods, the problem will not go away.

CLAPTON

wotsthat wrote: »

How many people do you think voted on this basis? I'll lend you my fingers once you've used yours up.

how many brexiters think they voted for this

Exchange rate fluctuations are part and parcel of life. This one is odd because the UK population voted to pay more for their stuff.

If the UK has been sold off one piece at a time with Sterling being stronger every day for the last 30 odd years what do you think will happen now we've got a sale on?

I'm devasted : I believed you when you told me hundreds of times that inward investment would cease immediately upon brexit : are you saying that wasn't true?

CLAPTON

BobQ wrote: »

It is inevitable that prices will rise. Those hardest hit will be those least able to cope with the increases, But if they voted Leave then they deserve little sympathy if they now complain about the impact.

There is little point in stockpiling goods, the problem will not go away.

what a vindictive person : one might think a natural McDonnell supporter

globalds

BobQ wrote: »

Those hardest hit will be those least able to cope with the increases, But if they voted Leave then they deserve little sympathy if they now complain about the impact.

You know what is really funny.

These remainers who are still throwing their toys out of the cot are the very people who would declare this kind of behaviour totally unacceptable had they been on the side that got the majority of votes.

You still don't get it do you ?

It is not about the money.
You sound like some bitter husband telling his ex she will never have it so good again ..Missing the point of the divorce entirely

I am sure our decision to leave the European union will have an effect on trade. I am not sure any of us ..And I mean anyone on the planet is sure how the unintended consequences will manifest.
Regardless of how confidently and loudly people state their certainty of things ..No one has the power of predicting the future ..Just informed guesswork.

We shall have to wait and see ..But good lord man ..Wishing ill on folk you do not know is a part of your character you should keep under wraps .