# Brexit has added 6% to Britain’s food bills, researchers say
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-27
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Brexit-induced trade frictions increase UK food prices by 6%
Meta Description: Research by the London School of Economics shows Brexit trade barriers have added 6% to food costs, hitting UK consumers hard amid rising inflation.
URL: https://financedigest.com/brexit-has-added-6-to-britains-food-bills-researchers-sayhtml

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By David Milliken

LONDON (Reuters) – Extra trade barriers created by Britain’s exit from the European Union and subsequent trade agreement have added 6% to the cost of food, researchers from the London School of Economics and other universities estimated on Wednesday.

The research compared price changes for food imported from the European Union with prices of food from further afield.

Food mostly imported from the EU, such as fresh pork, tomatoes and jam, saw bigger [price rises](https://www.financedigest.com/renault-revenues-rise-30-in-q1-on-higher-sales-and-prices.html "Renault revenues rise 30% in Q1 on higher sales and prices") than those such as tuna fish and pineapples which mostly come from elsewhere.

This research demonstrates a clear and robust impact of Brexit-induced trade frictions increasing food [prices for UK consumers during a time when the economy is already facing](https://www.financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiation.html "Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation") inflationary pressures from global sources,” one of the researchers, Nikhil Datta, said.

British [consumer price inflation hit](https://www.financedigest.com/uk-consumer-mood-hits-one-year-high-but-financial-gloom-persists.html "UK consumer mood hits one-year high, but financial gloom persists") a 30-year high of 7% in March, according to official data, and the cost of food is almost 10% higher than a year ago.

The research showed that the biggest spike in the [price of food](https://www.financedigest.com/france-leans-on-retailers-to-help-consumers-cope-with-food-prices.html "France leans on retailers to help consumers cope with food prices") imported from the EU came in January 2021 after an 11-month post-Brexit transition period ended and a free trade agreement negotiated by Prime Minister Boris Johnson’s government came into force.

While the trade agreement means there are no tariffs on goods moving between Britain and the EU, customs delays and food-safety [checks](https://www.financedigest.com/britain-delays-full-post-brexit-import-checks-until-late-2023-2.html "Britain delays full post-Brexit import checks until late 2023") have periodically led to lengthy delays for freight traffic at the port of Dover, the main link to France.

[Customs paperwork is also required](https://www.financedigest.com/first-year-of-n-ireland-protocol-required-1-million-customs-declarations.html "First year of N.Ireland protocol required 1 million customs declarations").

The 6% rise in [food prices](https://www.financedigest.com/world-food-prices-hit-record-high-in-2022.html "World food prices hit record high in 2022") that was attributable to increased trade barriers took place between late 2019 – just before Britain formally left the EU – and September 2021.

The study was based on comparing detailed item-by-item figures from [Britain’s consumer prices index against separate data](https://www.financedigest.com/britain-plans-new-data-rules-to-ease-compliance-burden.html "Britain plans new data rules to ease compliance burden") on trade flows, which the researchers said allowed them to disentangle any effects from the COVID-19 pandemic.

The research did not find an inflationary [impact from Brexit](https://www.financedigest.com/brexit-might-impact-our-migrant-pool-magazine.html "“Brexit might impact our migrant pool.”-Magazine") on non-food imports. This probably reflected how perishable foodstuffs were more sensitive to delays, researchers said.

While Brexit is not the main driver of rising inflation or the ‘cost of living’ crisis, this report provides clear evidence that it has led to a substantial increase in food prices, which will [hit the poorest families hardest,”](https://www.financedigest.com/digital-divide-hits-rural-black-americans-hardest.html "‘Digital divide’ hits rural Black Americans hardest") said Jonathan Portes of UK in a Changing Europe, an academic body which supported the research.

(Reporting by David Milliken; Editing by Mark Heinrich)


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