What does the falling value of the pound mean for UK consumers?


Overnight saw a quick sharp drop in the value of the sterling, called a "flash crash". Indeed the pound hasn't been doing too well since the EU referendum.

So here's what the falling value of the pound actually means for UK consumers.



The country is currently seeing a prolonged slump in the value of the pound, which has a knock-on effect on import costs. This in turn affects consumer prices, and some retailers have already warned of rising prices at the tills.

Former chief executives of Tesco, Sainsbury's, Asda, Morrisons, Marks & Spencer and B&Q warned ahead of the referendum that a drop in the pound - coupled with supply chain disruption - would cause prices to spike.



Motorists are expected to see the cost of petrol and diesel rise as the wholesale cost to UK retailers rises.



British tourists will see their spending power dramatically reduced. Not only has the pound collapsed against the dollar, but it has also plunged against the euro - with experts warning that it could reach parity by next year.

But on the flip side of this, tourists coming to Britain will have more pounds in their pockets and will theoretically spend more.



British expats, such as the 300,000-plus sunning themselves in Spain, will also possibly be hit. If they are paid in sterling they will see the value of their wages and pensions fall.


EU and British flags.

UK exporters will be able to sell their goods at cheaper prices to foreign buyers, making them more competitive. However, the benefit may be offset if Britain leaves the single market and the EU imposes steep tariffs on British goods.


Property market.

Some housing market experts have suggested falls in the pound could tempt overseas investors to snap up more homes in the UK, as the price of property would appear relatively "cheap" to them. This could have knock-on effects for domestic buyers trying to find a home, particularly those in London.