With the holidays approaching, many wonder how the decreasing pound will affect their shopping. Experts seem to be confident that, although there is an increase on the general price, consumers will not be affected.
The UK is a country that heavily relies on imported goods. With the decrease of the pound compared to the dollar and the euro, this might affect the price of the usual good that are bought and consumed around Christmas.
According to the Telegraph, foreign holidays, which are quite common at this time of the year, will also increase in price.
Professor of Economics at University College London, Dr. Antonio Cabrales, says:
“For what I’ve seen, the full impact of the devaluation hits hardest two years after the process has started. We are only two months in, so the full effect won’t be seen yet.”
The award-winning economics journalist for the Independent, Mr. Hamish McRae, says:
“I would expect to see a little more caution, but there is no evidence yet. And the unusual thing about British consumer is that if they have money they will go spend it. We spend nearly 70% of our GDP as consumers. We also have the highest proportion of retail sales are online, which means that we are also doing very sharp price comparisons.”
A possible solution to the issue is to buy national goods, which will not have a very increased price.
However, experts seem to be optimistic about the situation, and the majority of consumers seem to still be comfortable with the current price of Christmas products.