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Brexit and Weak Pound Start to Increase Electricals Prices

Brexit and Weak Pound Start to Increase Electricals Prices

Updated 01 November 2016 by Matthew
Couple comparing the prices of TVs

With the number of heavily discounted deals on TVs and Laptops currently being promoted it's hard to imagine that the price of electricals is doing anything other than dropping dramatically. However our latest analysis shows that retailers are actually increasing their prices on more and more of their products.

We analysed over 400,000 product price movements between July and October 2016 to determine how frequently retailers were increasing or decreasing their prices.

Following the UK's referendum decision on 23 June 2016 to leave the European Union the Pound has dropped by 18% against the US Dollar and by 14% against the Euro. Many of the larger retailers managed to hedge their currency risk prior to the referendum decision which, combined with pre-purchased stock, has allowed them to partially delay passing on the price increases on imported goods to consumers.

However, our analysis found that price increases are now becoming more and more common as the impact of the weak pound starts to take effect. Our study found that the proportion of price changes that are price rises has increased significantly since June. Notably Apple increased many of it's prices in September in response to the weakening pound.

Proportion of Price Increases

Each month we looked at the number of price changes that were price increases and the number that were decreases. We then compared the increases to the decreases to determine whether retailers were adjusting a greater proportion of their prices upwards. In June 2016 the proportion of retailer price changes on electricals that were price increases was only 16.5%. By October 2016 this figure had nearly doubled to 31.6% indicating that retailers are increasingly needing to up their prices.

The proportion of retailer's price changes that are increases has almost doubled in the last 4 months.

Price Increases By Category

Our analysis found that the greatest number of price increases where on PC monitors, where over 1,000 products increased in price between July and October 2016. Significant numbers of price increases were also seen in ovens, projectors and fridge freezers and TVs. In total over 5,000 products had increased in price over the last 4 months.

The biggest price increases were on TVs where retailers that did increase their prices did so by an average of 11.9%. This represents an average increase of £88.80.

The percentage increases across all categories was still below the 18% reduction in the value of the Pound, suggesting that retailers have still only passed on part of the true increase in the cost of electrical products. If the full 18% drop in value of the Pound was applied to TVs then the average TV would increase in price by £174.

We have seen price increases averaging 8% on electricals in the last 4 months, but the value of the Pound has dropped by 18% over the same period, so further substantial price increases are expected.

Examples of Typical Price Increases

Below are some representative examples of the observed price increases between July and October 2016.

CategoryProductNumber of Retailers
That Increased Their Price
Average PriceAverage
% Increase
July 2016October 2016
FridgesLec L5010W Freestanding Fridge - White24£130.65£145.4511.3%
PC MonitorsHP Z30I LCD Monitor21£1,051.85£1,207.1314.8%
OvensBosch HBC84H501B Built in Compact Oven with Microwave21£428.50£485.7913.4%
PC MonitorsAOC i2360PHU Professional 23inch LCD Monitor (1000:1, 250 cd/m2, 1980x1080, 5ms, DVI)19£140.19£167.7019.6%
OvensBosch HBM13B261B18£556.44£616.0510.7%
PC MonitorsIiyama XB3070WQS-B1 Monitor - Black ( 2560 x 1600, MHL, DisplayPort, DVI)18£648.23£717.0110.6%
PC MonitorsE2460PHU - AOC Value e2460Phu - LED monitor - 24"18£134.96£160.5318.9%
PC MonitorsAOC Pro-line Q2778VQE - LED monitor - 27"18£224.16£259.4715.8%
PC MonitorsB2783QSU-B1 - Iiyama ProLite B2783QSU-B1 - LED monitor - 27"17£252.82£287.7013.8%
ProjectorsOptoma W304M WXGA 3100 Lumens 3D Ready DLP Projector17£711.43£799.1512.3%
PC MonitorsDell UltraSharp U2913WM - LED monitor - 29"17£355.86£401.2712.8%
PC MonitorsBenq RL2455HM 9H.LA9LB.DBE17£153.92£173.7712.9%
PC MonitorsB2780HSU-W1 - Iiyama ProLite B2780HSU-W1 - LED monitor - 27"17£194.39£216.1011.2%
ProjectorsW305ST/Short Throw WXGA/3200AL/3D 95.8TN01GC0E - C200017£532.62£616.5315.8%
PC MonitorsAOC E2470SWHE 23.6" Black Full HD LED display16£101.42£115.3013.7%
Fridge FreezersHotpoint RFAA52P Ice Diamond a Fridgefreezer16£240.81£270.4112.3%
PC MonitorsIiyama Prolite P1905s-b2 19 Hard Glass Monitor 5:4 5ms 1280 X 1024 Vga Dvi16£139.90£157.0512.3%
Digital CamerasCanon PowerShot SX60 HS 16.1 Megapixel Bridge Camera - 7.6 cm (3") LCD - 16:9 - 65x Optical Zoom - 4x - Optical (IS) - TTL - 4608 x 3456 Image - 1920 x 1080 Video - HDMI - PictBridge - HD Movie Mode - Wireless LAN16£343.77£383.7011.6%
Digital CamerasCanon EOS 750D Digital SLR Camera with 18-135mm is STM Lens16£783.36£871.9611.3%
ProjectorsOptoma ML750e15£437.69£487.9411.5%
PC MonitorsIiyama Prolite XU2290HS-B1 22 DVI VGA HDMI IPS Ultra Slim Bezel Monitor15£108.18£123.0613.7%
PC MonitorsIiyama B2280HS-B1 22 DVI VGA HDMI Height Adjust Monitor15£129.33£149.0215.2%
PC MonitorsAOC G2460PF 24 1920x1080 1ms VGA DVI HDMI Gaming Monitor15£199.01£225.8613.5%
Digital CamerasCanon EOS 100D Kit (18-55 STM), digital camera15£392.27£431.8610.1%
PC MonitorsAOC I960PRDA 19 1280x1024 6ms DVI-D IPS Monitor15£117.98£138.4417.3%
FreezersHotpoint FZA36G Freestanding Freezer - Graphite15£255.75£282.3310.4%
Digital CamerasCanon PowerShot D30 (12MP) Waterproof Sports Digital Camera (Blue)14£227.49£257.1113%
TVsSony KD-49X8305C BRAVIA X8305C Series - 49"LED TV14£744.20£838.2812.6%
PC MonitorsF4M97AAABU - HP ProDisplay P17A - LED monitor - 17"14£127.73£145.9414.3%
FreezersHotpoint RZA36P Undercounter Freezer - White, White14£204.15£243.8519.4%
PC MonitorsIiyama ProLite B2280HS-B1DP 21.5\14£121.24£133.8310.4%
PC MonitorsAOC u3477Pqu, LED Monitor14£543.10£644.0718.6%
Digital CamerasSony Cyber-shot H400 Digital Camera13£204.79£241.0917.7%
PC MonitorsBenq XL2430T 24" Black, Red Full HD13£307.80£340.4010.6%
Fridge FreezersHotpoint NRFAA50S Freestanding Fridge Freezer, 55cm, Manual Defrost, A+ Energy13£237.80£271.0714%
ProjectorsAcer K135i DLP WXGA 6000 Lumens 3D Projector13£418.62£465.7511.3%
PC MonitorsASUS VS247HR 23.6\13£111.17£130.1517.1%
PC MonitorsIiyama ProLite XU2590HS-B1 25" Black Full HD LED display13£138.36£159.4615.2%
PC MonitorsHP EliteDisplay E232 IPS 23" Black Full HD Matt12£167.12£197.0417.9%
PC MonitorsAOC q3277Pqu 32" Widescreen AMVA LED Black/Silver Multimedia Monitor (2560x MB11262912£346.01£385.8511.5%
PC MonitorsEizo FlexScan EV2450-BK 60.5 cm (23.8") LED LCD Monitor - 16:9 - 5 ms - 1920 x 1080 - 16.7 Million Colours - 250 cd/m² - 1,000:1 - Full HD - Speakers - DVI - HDMI - VGA - USB - 47 W - Black12£225.22£262.5216.6%
PC MonitorsAOC Value E2460SD2 - LED monitor - 24"12£108.47£120.7511.3%
FreezersHopoint FZA36P Under Counter Freezer, 60cm, Frost Free, A+ Energy12£270.52£300.7411.2%
PC MonitorsAoc Value E2476vwm6 61Cm (24") Led Monitor - 16:9 - 1 Ms12£114.04£131.7215.5%
PC MonitorsEx-Demo AOC G2460VQ6 (24 inch) LCD Monitor 1000:1 250cd/m2 1920x1080 1ms (Opened / Item as new)12£125.70£142.0713%
PC MonitorsAOC Value E2770SHE (27 inch) LED Monitor 250cd/m2 (1920 x 1080) HDMI VGA12£138.86£164.8618.7%
PC MonitorsAOC i960Srda 19-Inch Monitor (5:4, 1280 x 1024, VGA ,DID_D)12£105.65£119.9313.5%
Washer DryersHotpoint Ultima Wdud9640P 1400 Spin, 9Kg Wash, 6Kg Dry Washer Dryer - White12£436.77£508.2316.4%
Washer DryersIndesit IWDC 6125S Washer Dryer - Silver, Silver12£306.52£343.2512%
PC MonitorsBenq BENQ BL912 19 TN LED MONITOR BENQ BL912 19 TN LED MONITOR Aspect Ratio: 5:4 Backlight Technology: LED Brightness: 250 cd/m² Display Colours: 16.7 Million Compliance: TCO 6.0 Contrast Ratio: 1000:1 DVI-D Port(s): 1 Dynamic Contrast Ratio: 12,000,11£122.46£136.7911.7%