The exposure of households' food spending to tariff changes and exchange rate movements
- Document type
- Levell, Peter; O'Connell, Martin; Smith, Kate
- Institute for Fiscal Studies
- Date of publication
- 27 July 2017
- IFS Briefing Note; BN213
- Social Policy, Poverty Alleviation Welfare Benefits and Financial Inclusion
- Social welfare
- Material type
Download (1.2MB )
Brexit has the potential to have a substantial impact on the prices households pay for food. Currently around 30% of the value of food purchased by households in the UK is imported, and the major source of food imports is the EU. In comparison, only 17% of overall consumer spending is on imported goods. This means that changes in the costs of imports – for example, through changes to tariffs or movements in exchange rates – are likely to have a particularly big impact on food prices.
This briefing note discusses how changes in prices of imported food – for example, as a result of changes to tariffs and movements in exchange rates – might affect the prices that different households pay for their overall food baskets.
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