Brexit Cash Crunch

April 27, 2017 12:36 PM

Since the Brexit vote last June, the value of the pound has fallen by 20% (one fifth) against other currencies.

This means that it is now more expensive for us to buy things like petrol that are traded on the world markets in dollars.

Food imports have also become more expensive because they are bought by food retailers in Euros or other currencies that are not as weak as the pound.

Petrol prices have gone up by an average of 9.2p per litre since last June, with no sign of this slowing down. Some food items have shrunk in pack-size, but still cost the same - so called "shrink-flation".

Food prices are expected to rise by an average of 5% in the coming months. The rate of annual inflation is now 2.3% and predicted to go higher.