Brexit bumps up banana price as Asda, Lidl and Aldi increase cost of fruit for first time in five years
Pound has dipped dramatically in value against dollar since Referendum - making the yellow energy snack more expensive at source
BANANA prices have gone up for the first time in five years at British supermarkets, new data reveals.
Figures show Asda, Lidl and Aldi have all increased a kilo of the fruit from 68p to 72p, a six per cent rise.
The 68p price tag was introduced in 2011 and while there have been a couple of brief price rises since then, they were short lived and as a result of temporary shortages in production.
But in general, shoppers have been paying 68p per kilo or less since the price was set in December 2011.
Since then the best selling energy snack has been the centre of continuing price wars among retail giants such as Tesco, Sainsbury’s and Asda because it is a staple of millions of weekly shopping lists.
However, the fruit is bought from suppliers around the world in dollars and sterling has dipped dramatically in value against the dollar since Brexit - making bananas more expensive at source.
Retailers have managed to renegotiate deals with suppliers to limit the increase while others have absorbed some of the rises caused by currency fluctuation, but only to a certain extent, say experts.
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According to trade mag The Grocer the rise ‘reflects growing inflationary pressures on the multiples due to the weak pound, with bananas generally bought in dollars.’
A source told the publication: “There has been bad weather in Costa Rica recently but I don’t think that would be the reason for this price increase.
“It is more a symptom of inflation around the Brexit vote and I would suspect long term supply contracts are now coming to an end and being renegotiated based on the currency situation.”
Waitrose, Sainsbury’s and Tesco were still selling a kilo of loose bananas for 68p last night/Mon while Morrisons sells a bag of five bananas for £1 rather than by weight.
Some in the industry welcome the increase. Alistair Smith of Banana Link which campaigns for growers, said: “It’s a step in the right direction but this is far from the sustainable pricing we have called for.”
The rise in one of Britain’s most popular grocery products is not the first in recent weeks. A month ago Asda increased the price of a four pint milk container by 4p to 99p.