U.K.: Beer prices increase due to Brexit induced inflation

Heineken and Carlsberg are to follow MolsonCoors , the maker of the U.K.'s most popular beer Carling, and AB InBev to increase beer prices in the United Kingdom. Heineken will lift prices by 6p on the cost of a pint and Carlsberg 2.6% in average.

The chief executive of the British Beer and Pubs Association(BBPA),  Brigid Simmonds, warned that beer prices in the U.K. could further go up, when the British Pound, which has fallen 18% after UK’s referendum to leave the European Union, would remain low.

A low currency is usually associated with higher import prices which cause higher inflation in countries with an export deficit, like the U.K. Balance of Trade in the United Kingdom averaged -1452.23 GBP million from 1955 until 2016, reaching an all-time high of 2946 GBP million in March of 1981 and a record-low of -6058 GBP million in November of 2013. In November 2016 the figure reached £4.2 billion.

Britain’s Consumer Prices Index (CPI) stood in November at 1.3%, which marked a two-year high and experts see an even higher rate, when long term effects of the depreciation of the British Pound start to materialize.

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