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Food prices could surge by 10% after Brexit, Bank of England chief claims

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Food prices could surge by 10% after Brexit, Bank of England chief claims

Food prices could rise by up to 10% if Brexit is not achieved in an orderly fashion, the governor of the Bank of England has warned MPs.

Mark Carney said the increase could be seen in “extreme” cases and went on to warn that, even if the Prime Minister’s planned agreement with the EU goes forward in a less extreme scenario it will likely lead to an increase in prices of 6%.

The Bank of England has run several assessments on the financial and economic ramifications of Brexit, all of which have seen the UK’s decision to leave as a net-negative.

Theresa May is currently lobbying MPs to support her agreement, which looks set to fail after facing derision from all sides.

A vote to agree or decline her plan of action is expected to go ahead halfway through December. It is currently unclear what would come next if her agreement is voted down.

Carney said: “In the most extreme scenario, on average your shopping bill goes up by 10%… if you go to a more orderly scenario with the transition, then it’s something in around the 6% range.”

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