Britain has started to feel the pains of the Brexit vote only weeks after they decided to leave the European Union. The consequences are a falling pound, exodus of investors out of the United Kingdom and the recent rise in prices of personal computers and cocoa.
Many will have to dig deeper into their pockets to afford computers and chocolates after the Brexit vote. Lenovo is first in the line of computer makers to say it will consider price increases in lieu of the sterling’s downward trend. The price of cocoa has also risen by 1.5% to its highest in 40 years.
Lenovo, the world’s largest manufacturer of PCs has been worst hit by the effects of the falling sterling. According to the company’s chief financial officer Wai Ming Wong the company’s immediate reasonable move is to pass the cost over to the consumers. The company is however looking for other ways the deal with the cost of the increasingly dropping pound.
Dell and Oneplus are other players in the tech business that rising the prices of their devices in the U.K by as much as 10 %. The U.S Company which has been holding off price rise now say it will be inevitable in the near future. Since computer components are sold in dollars tech manufacturers have seen increased production cost as the pound weakens against the dollar. Other computer makers are likely to increase UK prices following the pounds drop of more than 10% since the referendum. Dell however says consumer products will not be affected by the hikes.
Lovers of chocolate have not been spared, the price of cocoa has been rising steeply after the Brexit vote. Analysts say the recently witnessed price hikes are purely reactionary changes to currency movements.
The new cocoa price is certainly bad news for Britain’s millions of chocolate consumers. Britons are one of the biggest consumers of chocolate across Europe, but this may soon change. On the day after the vote, cocoa prices reached a five year high of 2, 351 pounds per ton. The price increase happen even as cocoa prices in the U.S are falling because of the unwavering dollar.
Things are happening exactly like the ‘remain campaign’ warned. Analysts speculate that Britain will continue to experience economic slowdown as the sterling pound plunges further. Very soon the sterling pound may settle at parity with the dollar.
With the above information you can get a better understanding of how the BREXIT vote will have an effect on certain goods. People can start to prepare themselves for any future changes.