Leaving the EU added nearly £6 billion ($7.2 billion) to household food bills in the UK, with the poorest bearing the brunt, according to new research released Thursday.
The price of food products increased by 3% a year since Brexit, leading to a 6% jump over a two-year period, London School of Economics researchers have discovered.
Brexit caused a loss of £210 for the average UK household, or £6 billion overall, according to the report, titled Non-tariff barriers and consumer prices: evidence from Brexit.
“Since poorer households spend a larger fraction of their income on food, they are hit harder,” said Nikhil Datta, assistant professor of economics at Warwick University and one of the report’s co-authors.
The UK’s annual inflation rate spiked to 11.1% in October, the highest since October 1981.
Latest data from the British Retail Consortium trade body indicates UK food price inflation hit a new high of 12.4% in November, driven by a surge in prices of essentials such as eggs, dairy products, and coffee.
“In leaving the EU, the UK swapped a deep trade relationship with few impediments to trade for one where a wide range of checks, forms, and steps are required before goods can cross the border,” Datta said.
“Firms faced higher costs and passed most of these on to consumers.”
Trade in the EU “goes far beyond the elimination of tariffs within its borders: it also minimises non-tariff barriers (NTBs) to trade through, for example, mutual recognition of standards,” the report explained.
It emphasized that NTBs are “an important impediment to trade that should be a first-order concern, at least on par with tariffs, for policymakers interested in low consumer prices.”
The researchers said the Trade and Cooperation Agreement signed after Brexit enables the UK to have tariff-free trade with the bloc, but “it lacks the depth of the EU.”
They said the deal entails more NTBs between the two, including broad customs checks, rules of origin requirements, and other measures that have significantly increased trading costs, AA reports.
See all the news
Gold is shining in the new geopolitical world
JSC “Rustavi Azot” was sold
We Are Creating An Innovative Co-Working Space In Tbilisi - Sergi Gvarjaladze
The Rich Often Enjoy Tax Break - Deputy Minister
Israel Got Acquainted With The Business Tourism Potential Of Georgia
Kettari Foundation became a partner of DATAFEST this year
მაკროეკონომიკური ტრენდები მსოფლიოსა და საქართველოში
EBRD to fund the rehabilitation of 10 metro stations in Tbilisi with €50 million project
Tata Power’s CEO Pays Visit to BMG
Turkiye generates more than $35B tourism income in 1st nine months of 2022
NEQSOL Holding has won defamation case against Communications Commission
Trip.com says China hotel bookings are surpassing pre-pandemic levels
Europe's largest crypto exchange WhiteBIT has partnered with Netflix
Interview with Albert Park, ADB’s Chief Economist - By Elene Kvanchilashvili, Forbes Georgia Executive Editor in Chief
Interview with #EBRD President Odile Renaud-Basso by Giorgi Isakadze, Editor in Chief of Forbes Georgia
Investigation Service detained two persons of the fact of evading a particularly large amount of tax
This year, the VIII international literature festival Odesa will be held in Batumi
Georgian Commercial Banks Boost Business loan portfolio for large enterprises
High blueberry exports from Georgia In July
#ForbesTalks - ინტერვიუ გიორგი ჯახუტაშვილთან / 10.08.2022