British Prime Minister David Cameron warned voters Sunday that they would face higher grocery bills if the country decides to leave the European Union at a June 23 referendum, citing a potential drop in the value of sterling. Cameron is leading the campaign to keep Britain inside the European Union ahead of the referendum, the outcome of which will have far-reaching consequences for the country's economy, its role in world trade and its global diplomatic status.
"Independent studies show that a vote to leave would hit the value of the pound, making imports more expensive and raising prices in the shops," Cameron said in a statement. His comments mark a shift in campaign tactics by the ‘In' side: a push to make explicit the link between the macroeconomic risks that have dominated the Brexit debate so far, and their potential impact on Britons' daily lives. "This isn't about dry economics; this is about the economic security of hardworking families in Britain," he said.
The warning comes from a government analysis of the short-term impact that a British exit would have on voters. It modelled a 12 percent fall in the value of sterling, a figure it said was based on external impact assessments, and predicted the effect on prices after two years. The analysis said the average family's weekly food and drink bill would rise by almost 3 percent, or 120 pounds ($174.06) per year, and that clothing and footwear costs would rise by 5 percent, or 100 pounds per year.
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