It rose above 11 percent in 2022, the highest rate in the last 40 years

LEAVING the European Union added an average of £210 ($258) to British households’ food bills over the two years to the end of 2021, according to new research from the Center for Economic Performance at the London School of Economics (LSE).

UK INFLATION: Rising above 11% in 2022, highest rate in 40 years

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Brexit has cost British consumers a total of £5.8 billion ($7 billion), according to research published on Thursday. The study confirmed that food bills rose by 6%, hitting low-income households the hardest. Brexit-induced price rises added 1.1 per cent to their overall cost of living – more than the 0.7 per cent increase felt by wealthier households.

The report pointed out that the growth in consumer prices was caused by products with high non-tariff barriers, while there was no significant increase in those with low non-tariff barriers. This could mean that exporters from the EU and importers from Great Britain faced higher costs due to the new barriers, of which 50 to 88 percent were passed on to consumers, according to the announcement.

Trade between the UK and the EU remains tariff-free under the rules of the Brexit deal. However, extensive customs controls, rules of origin requirements and sanitary measures for trade in animals and plants add to the pressure on importers and exporters.

The LSE study also found that while domestic food producers in the UK benefited from less competition, their gains were outweighed by losses to consumers of over £1 billion ($1.2 billion). Moreover, the gains did not generate any revenue for the government.

“By leaving the EU, the UK has swapped a deep trading relationship with few barriers to trade for one that requires a wide range of checks, forms and steps before goods can cross the border,” wrote Richard Davies, professor at the University of Bristol and co-author of the study. .

He pointed out that the inflation rate in Great Britain has risen above 11 percent in 2022, which is the highest rate in the last 40 years.

Britain voted to leave the EU in June 2016, followed by several years of tense negotiations before officially leaving the union in January 2020 and exiting the single market and customs union in January 2021.


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