Further evidence has emerged of the impact of Brexit on consumer finances as the price of everything from Marmite to MacBooks has risen.
The falling value of sterling against other major currencies has seen the cost of raw materials for manufacturers increase, and also hit the cost of holidays.
And, consumers have felt the fallout from the June 2016 referendum to leave the European Union on the cost of their weekly shop.
Exclusive research commissioned by Yahoo Finance from UK-based foreign exchange brokerage Halo Financial reveals the price of Brexit for ordinary families.
It shows, for example, the cost of an average family holiday to Europe has risen by more than £500, while a new hatchback car is £1,000 more expensive now than last summer before the vote.
Equally, the analysis also shows:
- A bottle of wine costs 16p more
- 200g of squeezy Marmite costs 5p more
- 250g block of butter costs 15p more
- Changing £500 into euros costs £90 more
- A MacBook pro costs £250 more
“In some cases, it’s obvious,” David Johnson, director at Halo Financial, says of the impact of Brexit.
“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.”
He adds: “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.”
|Pre-referendum (£)||Post-referendum (£)||Price Difference (£/p)|
|Average family holiday in EU||2,333||2,851||£518|
|Glass of wine||3.60||3.70||10p|
|Bottle of wine||5.40||5.56||16p|
|Pint of Beer||3.46||3.47||1p|
|Travel Money for EU trip – £500||635||545||£90|
|Travel Money for US trip – £500||715||640||£75|
|Average price of new hatchback car in UK||17,000||18,000||£1,000|
|Doctor Who Lego Set||49.99||52.48||£2.19|
|200g Squeezy Marmite||2.35||2.40||5p|
|250g block butter||1.35||1.50||15p|
|White goods – Hotpoint WMAO863P 8kg Washing Machine||279||299.99||£20.99|
|Tech products – MacBook Pro 13″ Silver||1,249||1,499||£250|
|2 bed Spanish holiday home in Murcia costing €235||185,039||215,596||£30,557|
|2 bed French cottage in the Dordogne costing €212,000||166,929||194,495||£27,566|
|2 bed, 2 bath condo in Florida||341,958||382,031||£39,073|
The pre-referendum sterling-euro exchange rate stood at €1.27, just a few days before the vote. Now, it’s hovering around €1.09, although some airport bureaux were offering below €1 during the summer of 2017.
Similarly, Britons could get $1.43 to the £ before the vote, while now they can expect just $1.28.
“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,” says Johnson.
“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…”
Halo’s research supports recent findings from consumer watchdog Which? that also exposed price increases since the referendum for many groceries – butter, cakes, jam and fish, for example – but particularly striking hikes for certain brands of cereal, coffee, tea and mayonnaise.
Most manufacturers told Which? they were struggling to absorb the rising cost of raw materials and ingredients because of the exchange rates.