London’s financial analysts expect that the extreme weather of recent months is likely to cost more than tens of millions of pounds on the national economy at weekly purchases by British consumers.
One of the most prestigious business and economic analysts in London, the study of Monday’s Center for Economics and Business Research (CEBR), points out that Britain has experienced one of the hottest and driest summers of all time this year; daily average temperatures have exceeded the long-term average since April, and in some parts of the country there was no rain for more than fifty days.
However, this was preceded by a cold, rainy winter, and these extremes already appear at the wholesale prices of domestic food production: from March to July the producer prices of onions increased by 41 percent, beetroots by 80 percent, salads by 61 percent, bread dairies by 20 percent and strawberries by 28 percent.
Most of the feed and edible grain used in Great Britain comes from other European countries, but in these areas temperature records have also been measured this year. Reserves have prevented drastic surging of cereal prices for the time being, but sectoral forecasts and futures rates point to an imminent rise in prices on this market, according to CEBR London analysts.
The house is a source of particular concern for wheat, which is heavily involved in the British and European consumer basket. The amount of wheat harvested in Europe is expected to decline by 5% this year and European wheat prices have risen by 30% since the end of April.
According to CEBR’s calculations, it is likely that UK food prices will rise by at least 5 percent over the next period, increasing the weekly cost of consumption by £ 45 million – by more than $ 16 billion – by $ 7.15 to $ 2600, for a British household for monthly shopping.
CEBR analysts point out that it may take up to 18 months to reach full-fledged consumer prices, and even though summer heat may have surpassed its peak, the rise in consumer spending in extreme weather is likely to start thereafter.