Irish shoppers are not benefitting from the full benefits of the over 13% surge in the value of the euro against the sterling in the past year the Consumers’ Association of Ireland has said.
The consumer body also said that it strongly suspects that the benefits outlined are not being passed onto Irish shoppers in lower prices.
The association said it wants to highlight that consumers may think that they are securing low prices but that history is repeating itself in that the many food and goods shipped directly across the Irish Sea from Britain should be substantially cheaper following the unprecedented surge in the euro since the UK’s vote to quit the EU just over a year ago, reported Irishexaminer.ie
Dermott Jewell, the policy and council adviser at the consumer organisation, told the Irish Examiner that food and drink items imported on a large scale directly into Irish shops from Britain should have fallen steeply.
It was outlined that the 'foods and non-alcoholic drinks category, which covers almost 60 individual items fell by only 2.7% in the year, while breakfast cereals, a benchmark for goods that are imported directly from Britain, fell by just over 4%'.
'Not for the first time history is repeating itself,' said Mr Jewell. 'Before we had the recession, consumers were not getting a fair or reasonable exchange rate. The Republic was always paying a margin gap and retailers and distributors were taking the profit. We are again taking the position as subsidisers.
He said that the 2.7% fall in food and beverage prices since June 2016 was 'small'.
The euro has surged to over 88p from 76p, since the evening ahead of the UK referendum in June last year.
© 2017 - Checkout Magazine by Donna Ahern