Tesco Plc (LON: TSCO) boss John Allan said that UK consumers won’t get affected by Brexit-related food price rises.
- He said under the new deal between the UK and the EU, the price changes will be very modest.
- Allan further added that in a case of a new deal, tariffs were the major thing which would have increased the food prices and had even warned earlier that 3to 5 per cent price rise could be expected,
- However, with the deal done, he said that despite more administration related to importing and exporting, there won’t be much impact on the prices.
- On Christmas Eve, PM Boris Johnson said the deal ensures tariff-free trade between the UK and the EU, which is its biggest trade partner.
- Johnson called the deal a jumbo agreement, similar to Canada deal, able to preserve £660 billion trade between the two blocks and also allowing the United Kingdom to negotiate separate deals with different nations individually.
- Without a deal, the prices of many imported food items could have gone up by 40 per cent.
- On 29 December 2020, the stocks of the company traded higher by 0.90% from its previous closing, hovering at around GBX 235.00 at 14:37 PM GMT+1.