Food prices could rise by 10% following an “extreme” Brexit, according to Bank of England governor Mark Carney.
Carney said that a softer Brexit would still see food prices rise by around 6% with Bank of England colleague Jon Cunliffe saying that the UK imports about half of its food from overseas.
According to the governor, the price increases would come mainly from a fall in the value of the pound along with tariffs and increased costs at the border as imports are checked. Carney told MPs on the Treasury Committee: “In the most extreme scenario, your shopping bill goes up 10%.”
The UK’s ports are not ready for a no deal Brexit which would see the country trade under World Trade Organization (WTO) rules, according to Carney. He said: “At this point in time, the ports are not ready for a move to an administered WTO relationship.
“To be absolutely clear, our agents, my colleagues, we have gone to these ports and had conversations directly with the ports in question. We have talked to the private logistics companies, so we have gathered direct information on this.”