More evidence regarding the impact of Brexit on consumer finances has emerged as the price of everything from Marmite to MacBooks has increased.
The decreasing value of sterling against other major currencies has seen the rise in the cost of raw materials for manufacturers and also affected the cost of holidays.
And, consumers have experienced the fallout from the referendum in June 2016 to withdraw from the European Union on the prices of their weekly shop.
Exclusive research that was commissioned by Yahoo Finance from Halo Financial, the UK-based foreign exchange brokerage, reports the price of Brexit for ordinary families.
For example, it reveals the cost of an average family holiday to Europe has increased by more than £500, while a brand-new hatchback car is currently £1,000 more expensive than last summer before the vote.
Equally, the analysis also reveals:
- 200g of squeezy Marmite costs 5p more
- One bottle of wine costs 16p more
- Converting £500 into euros costs £90 more
- A 250g block of butter costs 15p more
- The MacBook Pro costs £250 more
“In some cases, it’s obvious,” said the director at Halo Financial, David Johnson, regarding Brexit’s impact.
“For example, travel money, holidays abroad, or buying a second home in popular EU destinations such as Spain or France, where the large sums required really highlight the difference in costs, pre- and post-referendum.
“To bring this to life, a two bedroom holiday home in Murcia costs well over £30,000 more now than before the referendum, at today’s low sterling-euro exchange rate.” continues: “But what about the knock-on effects on our wallets and daily lives?
Johnson continues: “But what about the knock-on effects on our wallets and daily lives?
“Despite apparently flourishing industries in the UK, manufacturers are being squeezed by increasing costs, and in many cases, these are being passed on to the consumer.”
A few days before the vote, the pre-referendum sterling-euro exchange rate was at €1.27. Currently, it is hovering around €1.09, although some airport bureaux were offering below €1 during the summer of this year.
Similarly, Britons could receive $1.43 to the £ prior to the vote, while they can expect just $1.28 currently.
“With the pound weak against both the euro and US dollar, we are already getting less for our money when we go on family holidays or when buying property abroad,” declares the director.
“According to our research, it’s now over £500 more expensive to go on a family holiday in the EU, and we are getting close to £100 less for our travel money.
“But even the arguably less obvious aspects of everyday life are changing in response to a weaker pound; from the food we eat, to cars, fuel and family holidays…”
The research of Halo supports the recent findings from Which?, the consumer watchdog, that also revealed price hikes since the referendum for many groceries including cakes, butter, fish and jam, for example – but especially striking hikes for some brands of coffee, cereal, mayonnaise and tea.
Many manufacturers informed Which? that they were having a hard time to absorb the increasing cost of raw materials and ingredients because of the exchange rates.