Costs of Brexit

Although we don’t import directly, all the oils we use (coconut, castor and sustainable palm) are commodities which are traded worldwide in US dollars.  After the vote on 23rd June 2016, the pound dropped in value and nearly all our costs went up. We hoped, of course (like everybody), that this would be a temporary state of affairs, but 10 months later we are still in the same situation. So as our costs go up, so does the pressure on our finances. This year we will have to raise prices to our customers, who will not be happy, and maybe retail prices will go up. I doubt an increase in glycerine soap prices will make the headlines, but I am sure we are not the only SMCG manufacturer in this situation, so there will be supermarket price increases and the consumer will have to bear the brunt. I don’t remember  if this was well articulated in the pre-vote arguments, but this will be one of the many consequences of the decision.

My happy place