Brexit Accounted For Extra 6% Increase In UK Food Prices In 2020-2021 - Study

MOSCOW (Pakistan Point News / Sputnik - 01st December, 2022) Brexit accounted for an additional 6% increase in food prices in the United Kingdom from 2020-2021 due to non-tariff barriers on goods from the European Union which went into effect after the UK's withdrawal from the bloc, according to a study by the Centre for Economic Performance (CEP) at the London school of Economics released on Thursday.

"In leaving the EU the UK swapped a deep trade relationship with few impediments to trade for a shallow one where tariffs are eliminated but a wide range of checks, forms and steps are required before goods can cross the border... Firms faced higher costs, and passed most of these on to consumers: over the two years to the end of 2021, Brexit increased food prices by around 6% overall," the paper said.

The study claims the cost of food that was imported by the UK from the EU in 2020-2021 rose by 210 Pounds ($250) on average for every household, adding some 6 billion pounds to UK food bills over this period.

The CEP also found that this food price increase led to rising living costs, especially for the poorest households, and to record high inflation across the UK that reached 12.4% in November.

In June 2016, 51.8% of UK citizens voted in favor of terminating the country's membership of the EU, against 48.1% who voted for to stay in the union. On January 31, 2020, the country left the bloc after 47 years of membership. A transition period continued until December 31, 2020, during which the UK was no longer a member of the EU but still remained in the EU single market and customs union. London and Brussels managed to negotiate an agreement on trade and cooperation during that period.