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How the depreciated GBP affect consumers?

The sharp depreciation of the British currency after the Brexit vote already started to worry the UK citizens. The index of consumer confidence decreased to -3 points in October 2016, compared to -1 point in September. However, the result is far away from the lowest values, a during first week after Brexit vote, the consumer confidence fell to -12 points.

The decrease of the optimism for the British economy perspectives continue to keep the consumed moods under pressure. Despite of the positive factor, ensuing from the low interest rates and inflation, the sharp drop of the British currency undoubtedly causes concerns, that the growth of the prices will seriously hit the quality of life in UK during the next year.

The GBP depreciated by almost 17% after the vote for Brexit, but the currency slightly recovered after the first shock. However, the downtrend of the GBP returned in September and October, as currently the GBP/USD rate is around 1.21 and already affected the purchasing power of the British citizens. For example, on Thursday Apple significantly increased the price of its products for UK, due to the change of the exchange rate, The cheapest MacBook Air is now traded at price of 849 GBP, as previously the tablet cost 749 GBP.

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