Tesco boss says it is ‘very likely’ more prices will go up post-Brexit
Shoppers may find themselves caught up in the middle of another price war between supermarkets and suppliers
SHOPPERS may find themselves caught up in another war between supermarkets and suppliers as the chairman of Tesco warns food prices are “very likely” to rise because of Brexit.
Earlier this month the company had a bust up with Unilever and pulled popular items including Marmite, Pot Noodles and Ben & Jerry’s ice cream from its website.
They were locked in a war of words over who should bear the cost of the weakening pound with Unilever demanding steep price increases to offset the higher cost of imported goods, which are priced in euros and dollars.
Tesco hit back by removing Unilever products from its website and shoppers left some supermarket shelves empty as they panic bought some items, fearing the dispute would be lengthy.
And today John Allan, the chairman of the supermarket giant, implied this might not be the last dispute with a supplier.
He said the plunge in the value of sterling would have a knock-on impact on customers.
Speaking on BBC Radio Four’s Today programme he said: "I think it's probable, it obviously depends on currency, where the pound settles. If it stays where it is, it is likely."
He insisted he wanted to protect customers as much as possible after Marmitegate.
"Everyone who wants to increase prices will get scrutiny.
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“We are trying to defend our customers from unjustified price increases.
"But, that it is likely there will be some price increases going forward - I think is very likely.
"Remember at the moment we have got virtually nil inflation.
“Inflation I think could nudge up to 2% or 3%, food prices would be a part of that," he said.
Mr Allan warned that suppliers are "very concerned" about restrictions on migrant labour after Brexit, as he insisted Britain could not just take highly skilled immigrants.
"We have about a million, for example, EU citizens living in London, and many hundreds of thousands elsewhere in the country.
"And industries like the agricultural industry, picking and packing fruit and veg, and meat, and so on, are heavily dependent on migrant workers - not just seasonal migrant workers, but people who are here 52 weeks a year.
"And I know our fresh food suppliers are very concerned that is properly taken into account.
"We don't just need brain surgeons and architects, I think we need many people who do much more ordinary, but nonetheless extremely important, jobs.”