Irish shoppers are looking at a €19 increase in their weekly grocery shop in the event of a no-deal Brexit, according to the Irish Independent.
The Irish publication reports on an Economic and Social Research Institute (ESRI) study that found that prices across the board will shoot up in the increasingly more likely outcome.
The Full, Immediate Effect
Co-author of the report, Professor Edgar Morgenroth, believes that Irish consumers will feel the full force of the price hikes immediately after the deal expected to happen in March next year.
"Initially, the consumer will take a hit and gradually that will improve as we move and reinstate trade patterns," he said,” he said.
"Over time, the supply chain will adjust and people will get used to other products that might not come from the UK that might be cheaper.
It reports that everyday necessities like bread, milk, cheese and eggs that are imported from the UK will soar by up to 46%.
The Irish Independent compiled a basket of goods including various household stables. The basket currently costs €115.62, but can be expected to rise to as high as €135, especially for shoppers who buy British based goods.
Cigarettes, in addition, could see a 20c increase on UK goods, and a pint of larger could see a 5c rise.
Speaking to the Irish Independent, Bord Bia overseas trade manager Shane Hamill said prices may rise "as a result of complexities in the supply chain".
Hamill said that these would include customs compliance and tariffs.
He added that companies could keep the same prices on goods if they sourced cheaper ingredients or changed the size of products.
Professor Morgenroth, however, added that this presents an excellent opportunity for Irish and EU groups to step in.
Irish companies are already lead the pack in terms of Brexit preparedness, according to Hamill, with Bord Bia’s Brexit barometer survey highlighting that 32% of respondents already assessing the situation.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.