Brexit-related visas problems and lack of drivers led to the rise in prices in the UK. Executive Director of the British Retail Consortium (BRC) Helen Dikinson warned that without the actions of the government will pay British consumers, writes The Guardian.
The British economy faced growing inflation, according to the data of the BRC and the NielSeniq Research Group. The main problem was the shortage of drivers, caused by the fact that they cannot undergo regular testing to extend the driver’s license, as driving schools are closed due to coronavirus pandemic. In addition, many migrants who worked truckers had to leave the country after Brexit.
The lack of employees in logistics led to the failures in the supply chain, which is why the production of electrical goods, the prices are for which are under pressure due to the global shortage of chips. The deficit led to an increase in the price of electronics, which increased inflation of non-food products by 0.6 percent compared to the previous month. Such growth affected the overall situation with prices in Britain, which in August increased by 0.4 percent compared to the last month.
“without decisive actions of the government, the British will have to pay from their own pocket,” said Dickinson from BRC, hinting on the effects of Brexit. She called on the authorities to increase the amount of cargo driving exams carried out, change the rules for financing drivers and provide temporary visas for migrants from the European Union countries (EU) to reduce the shortage of personnel, which led to failures in supply and further deficit of goods.
On the eve of Christmas, the situation may worsen. Dickinson warned that people could face the deficit of choice and higher prices for the usual products. The warning was made after the toy retailer The Entertainer stated that the price of goods could grow by 10 percent for 18 months due to the failures in supply chain, lack of labor and higher transportation costs. Iceland supermarket chain also stated that the lack of truck drivers can spoil Christmas.
Despite the growth of inflation, prices in British stores remain lower than in the 1920-m counter. In August, there was a deflation by 0.8 percent compared to last year, which slowed down from the June figure of 1.2 percent. “There are some modest signs that expenses (for problems with deliveries – approx.” Tape.ru “) begin to influence the rise in prices for products,” said Dickinson.
High inflation has become a real problem for many countries around the world. A sharp rise in prices is due to record financial programs for stimulating economic growth. For example, in the eurozone, inflation rose to the highest level in a decade. According to the statistical agency Eurostat, annual inflation in the eurozone will be 3 percent in August compared with 2.2 percent in July.