Pound plunge means even higher prices for UK consumers – McKinsey

British consumers are likely to face a further hike in prices of clothing and homewares following the pound's plunge against the dollar, consultants McKinsey said on Tuesday.

by | 27 Sep, 2022

The majority of UK retail’s clothing and homewares are bought from Asia in dollars. The pound touched an all-time low of $1.0327 on Monday, sharply raising the costs of imports.

“With cost of goods being such a high proportion of the cost base of a company then the extent to which if you have that denominated in the dollar then it’s a pretty material effect,” Anita Balchandani, leader of McKinsey’s consumer industries and apparel, fashion, and luxury work in EMEA, told reporters when asked about the impact on consumer prices.

Read more at Reuters

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