Brexit economic chaos likely to lead to higher living costs
TECH GIANT MICROSOFT has become the latest firm to crank up its UK goods and services prices due to the fall in the value of the pound sterling.
The business confirmed that “enterprise software and cloud services” – mainly purchased by business clients – will rise by between 13 and 22 per cent from New Year’s Day 2017.
The higher costs are a result of the 18 per cent fall in the value of the pound against the US dollar since June’s vote to exit the EU, meaning that the US based firm decided to alter its UK-based pricing structure.
CNN money confirmed that digital businesses Apple, AP, and Dell will also increase prices by around 10 per cent.
The fall in the pound – and wider economic uncertainty following the Brexit vote – has contributed to an inflation rise, which is expected to continue over the next year.
Higher inflation – if outstripping wage increases – means that the public will find it harder to afford goods and services.
As a warning sign of potential price wars, giant corporate food importer Unilever pressed Tesco to accept a 10 per cent rise in costs – a move which led to certain food products running low on stock in the major supermarket.
Tesco’s chair, John Allan, today [Tuesday 25 October] said it was “very likely” that food costs will rise unless the pound makes a dramatic recovery in value.
How far the pound had fallen by its October 7th ‘flash crash’
Picture courtesy of Mike Mozart
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