Brits face the prospect of their weekly shop going up in price after Donald Trump’s stunning US Election victory.
Staple goods such as bread, orange juice, coffee and chocolate are set to increase after Trump’s win sent the value of the dollar soaring.
Analysis by Stocklytics has revealed global commodity prices have shifted, with British companies now getting less product for their pound compared to before the election.
Palm oil, coffee, orange juice, wheat and corn have all seen prices rise – and the extra costs are likely to be passed on to the consumer.
Neil Roarty, analyst at Stocklytics, has explained how Trump may cause a spike in supermarket prices, he said, “There were two big price movements when it became clear that Trump was heading back to the Oval Office: the price of the dollar and some commodities.
“The dollar has increased from 76p/$1 to 78p/$1 yesterday, meaning British buyers and their cash will buy less than it did last month. The strength of the dollar versus the pound has meant global foods, that are traded in dollars, have also gotten more expensive.
“Therefore, if you’re buying from the global wheat, cocoa, or coffee markets, these are all priced in dollars, meaning British buyers will get less for their money, and price rises could get passed onto UK shoppers if the dollar remains strong.”
As well as currency price rises, commodity prices rose upon the news of President-elect Donald Trump. The prices of consumer staples are up since last month, such as coffee (1.85%), orange juice (7.59%), palm oil (17.4%), which is used in cake, chocolate, and biscuits, and corn (1.39%) on the global futures markets.
He added, “Arabica coffee futures hit a high of $2.51 on 5th November, mainly pressured by a stronger dollar following Trump’s U.S. election victory. Prices have eased slightly to $2.47 but are still up over 10 cents since the beginning of November, but poor crop yields in places like South America are also driving prices higher. If these prices continue to rise, it could signal further price hikes for consumers at the checkout.”
