Brexit will drive up food prices: David Cameron

British Prime Minister David Cameron warned voters on 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.

Mr Cameron is leading the campaign to keep Britain inside the Europ-ean 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,” Mr Cameron said in a statement.

“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 per cent 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 per cent, or 120 pounds ($174.06) per year, and that clothing and footwear costs would rise by 5 per cent, or 100 pounds per year. However, the rival ‘Out’ campaign disputed the government analysis, saying that “protectionist” EU policies pushed up prices.

On Turkey joining the EU, Mr Cameron said it would be decades before Turkey could possibly join the EU, saying that it might happen in the Year 3000 on current progress.

Meanwhile, a survey showed that Indian-origin voters are largely in favour of Britain remaining in the European Union (EU), with a significant chunk still undecided ahead of the June 23 referendum, which has been described as a knife-edge vote. According to the British Election Survey released this week, 51.7 per cent of Indian-origin voters were against Brexit, compared to 27.74 per cent in favour of leaving the 28-member economic bloc.

However, there is a significant percentage (16.85 per cent) of those who “Don’t Know”, who are likely to hold the key in the referendum, described as a knife-edge vote so far.