Is your supermarket going to shrink food instead of putting up prices because of Brexit?
The vote to leave the EU may have pushed up the cost of food
SUPERMARKETS are apparently going to shrink the sizes of packets and switch to cheaper ingredients instead of putting up prices as a way to offset an increase in costs after Brexit.
Since the vote to leave the EU in June the value of the pound has fallen more than 10% against the dollar, as well as suffering against other currencies, pushing up the price of food.
The Banks of England has warned food retailers that it will have to “re-engineer products” instead of passing on price increases, according to a report in .
Supermarkets must try and find a way to keep costs down because of “highly price-sensitive” shoppers, the Bank said.
However, recent figures from the OECD have suggested that things might not be as bad as first feared.
The think tank, which was highly critical of Brexit, has upped its growth forecast for the UK economy from 1.7% in June to 1.8% now.
It did, however, halve its forecast for next year to just 1%
The Office for National Statistics also said that the Brexit vote has had no major effect on the UK economy so far.
RELATED STORIES
Sainsbury’s, Tesco, Morrisons, Asda and Waitrose all denied plans to change packets sizes or change products to include cheaper ingredients.
In the past, consumer group Which? Said that supermarket are being “sneaky” when they fail to alert shopper that products have been reduced in size without a reduction in price.
It slammed supermarkets for reducing product sizes and swapping ingredients for cheaper alternatives, while keeping the price of the item the same or increasing it.
Biscuits, juice cartons, chocolate bars as well as toilet rolls, shampoo and packs of batteries have all been reduced in size.
We pay for your stories! Do you have a story for The Sun Online news team? Email us at [email protected] or call 0207 782 4368