Neil Roarty, analyst at Stocklytics, has explained how Trump may cause a spike in supermarket prices, he said, 'There were two big price movements when it became clear that Trump was heading back to the Oval Office: the price of the dollar and some commodities.' The dollar has increased from 76p/$1 to 78p/$1 yesterday, meaning British buyers and their cash will buy less than it did last month. The strength of the dollar versus the pound has meant global foods, that are traded in dollars, have also gotten more expensive. Therefore, if you're buying from the global wheat, cocoa, or coffee markets, these are all priced in dollars, meaning British buyers will get less for their money, and price rises could get passed onto UK shoppers if the dollar remains strong.
As well as currency price rises, commodity prices rose upon the news of President-elect Donald Trump. The prices of consumer staples are up since last month, such as coffee (1.85%), orange juice (7.59%), palm oil (17.4%), which is used in cake, chocolate, and biscuits, and corn (1.39%) on the global futures markets.
Arabica coffee futures hit a high of $2.51 on 5th November, mainly pressured by a stronger dollar following Trump's U.S. election victory. Prices have eased slightly to $2.47 but are still up over 10 cents since the beginning of November, but poor crop yields in places like South America are also driving price rises.
Collection
[
|
...
]