Brexit Price Rises Now Hit Bananas As Fruit Goes Up For First Time In 5 Years

Brexit's gone bananas.

29/11/2016 16:04

Supermarkets have issued the first price rise to bananas in five years as post-Brexit vote currency fluctuations reek havoc with the cost of fresh produce.

German discounters Lidl and Aldi have all reportedly increased the cost of a pack of bananas from 68p to 72p - a six percent rise.

While Asda has raised the price of loose bananas to 72 pence per kilo - up from the standard 68p seen at its rivals, according to The Grocer. 

Bloomberg via Getty Images
The price of loose bananas has risen for the first time in five years at Asda

Bananas are traded in dollars, Mail Online reported, meaning the 17 percent fall in the value of the pound against the US currency has made the fibre-rich treat more expensive to source.

Aldi said it had increased the cost of a pack of the fruit to 72p but hadn’t increased the cost of its loose varieties.

However industry insiders told the Guardian that the budget supermarket could be hiding a much a bigger price increase as the pack was likely to weigh in at around 700g.

PA/PA Wire
Aldi and Lidl have reported increased the cost of a five-pack of bananas 

Supermarkets carefully protect everyday purchases like bananas from price rises as these are more keenly noticed by shoppers - and by industry price monitors.

Yet The Grocer found the three stores had tinkered with pricing in some way.

The trade magazine found the increase “reflects growing inflationary pressures on the multiples due to the weak pound, with bananas generally bought in dollars.” 

Chris Radburn/PA Wire
Asda has reportedly increased the cost of loose bananas - the first such rise in five years

Industry body Banana Link welcomed the higher prices, the group’s Alistair Smith told The Sun: “It’s a step in the right direction but this is far from the sustainable pricing we have called for.”

It comes after Ikea’s UK boss said the firm could not rule out post-Brexit price rises if tumultuous currency rates continued.

Last month supermarket Tesco was engaged in a high-profile stand off with Marmite producer Unilever over the latter’s propsed blanket 10 percent price rise.

And Sainsbury’s CEO Mike Coupe was forced to answer claims the supermarket had trimmed the thickness of bacon in a bid to save costs.

5 Things You Buy That Will Be Affected By Price Rises

  • Fresh produce
    Artemis via Getty Images
    Fresh produce like British apples are more at risk of inflation than other goods thanks to their shorter route to market - for example, the fuel used to transport them is becoming more expensive, according to the IFS.
  • Marmite, and the rest
    Chris Radburn/PA Wire
    The high-profile row between Unilever and Tesco highlights the current pressure on prices. It's not clear what deal was struck, but it's likely to be a compromise on the original demand of a 10% increase on Marmite, Pot Noodle and PG Tips, according to Mintel Retail.
  • Imported foods
    Daniele Carotenuto Photography via Getty Images
    Imported goods like coffee have risen in price by 12% in recent months, Sarah Hewin of Standard Chartered said. Increasing costs of raw materials look set to challenge manufacturers.
  • Clothing
    Newscast/AP
    The cost of clothing is likely to increase over the next year, with Next predicting a rise of around 5% - while retailers have bought next season's clobber, the future is less certain.
  • Furniture
    Laurence Dutton via Getty Images
    While furniture has a longer supply chain, firms like Ercol in Buckinghamshire are preparing to tinker with prices as the cost of raw materials like metal and wood increases.
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