No.

I work for a leading supermarket chain. Been in several meetings over the last 6 months about how much more the company can absorb the steadily rising costs.

Worse case scenario is your shopping will be 10% more expensive by the end of the year. Further rises if the EU play hardball.

Basic economics, not fortune telling I'm afraid.

Considering we have had virtually nil inflation for the last few years and Goverment policy is for a rate of 2% per annum, shopping is just part of the inflation equation. I dont see how the EU can play hardball with us, they have more to lose, after all we buy more from the EU than we sell to the other 27 EU countries. Anyway time will tell and a slight increase in inflation over the 2% target rate to me is a price well paying to get out of the undemocratic EU.

And the millions who are already living in or very near poverty?

Are they collateral damage?

Millions? Depends on what you class as poverty,I grew up in the 50s/60s and have seen what i would term poverty. In a country that millions are trying to get into and succeeding why do you think they are all coming here, the UK one of the most sought after countries in the world,they are not here for the poverty.

Having being brought up in city centre slums with shared outside toilets, no hot water, a tin bath and mice as room mates I often wonder if the modern day measure of poverty in the UK might be a bit more luxurious. Poverty is measured relative to the general standards of the population. Does it now mean not having money for TV, ale, cigs and a iphone?

No my friend what you are referring to is just one form of economics that being greedy capitalism.

What you are taking about is profit not cost, With the exception of a few core lines most Supermarkets can easily absorb a 10% increase and still make a huge profit. However they are greedy and so are most of there already wealthy shareholder who simply won't accept a drop in profits or dividends.

So let's be straight about this Tesco or whoever will never lose money even with a 10% hike in costs they will just make less profit. They are not willing to do this so they will pass that cost on to maintain profits to those who can generally afford it least - the customer.

That is basic economics in a market driven economy so spare us the platitudes please - we may be stupid but were not that stupid.

Well said Wollo.
Brought up in similar situation.Used to have bath Friday in front of black lead fireplace watching Wagon Train.
Shared wash house and toilet at far end of terrace.
Stop there before it gets like the Monty Python sketch.

Very well said Vastman! Add Redrow homes into that scenario - just announced great profits but most of Joe Public can't afford their ridiculous house prices!

Have any of you ever seen the wafer thin profit margins supermarkets operate on? That is why price wars don't last for long, it is unsustainable. Supermarkets are one of the lowest net margin businesses listed on the LSE.

I wouldn't bother mate.

The only thing that matches the scale of many leavers ignorance, is their arrogance.

"Because we used to live in a dump back in the 'good ol' days' then what's the problem.

Absolute garbage Sainsbury's made a £587m profit in 2016 how the hell is that wafer thin!

I happen to know that a certain Supermarket buys Scotch eggs in for their value range at 23p a unit. That includes the supplier paying for the storage, transport and packaging costs (including the design) and sells them for 99p - that is virtually a 300% mark up way beyond what any small producer can demand.

Anther point, they may have lower net margins but they also have almost instant cashflow which is a powerful tool. Supermarkets order by the millions but they don't pay for it all and once and even the final call off takes 30 days to process. The customer doesn't get 30 days to pay for his groceries does he!

It's the suppliers and customers on wafer thin margins not the supermarkets but if you want to peddle that line feel free.

I was talking about net margin. Look at revenue to net profit.

People who follow the stock market and listed companies know that supermarkets operate on tight margins.

I'm not going to bother. You clearly knows better than all of our management team and the two leading economists that we had present.

A word for you though, in my experience, gobe, know it all's like your good self, know very little in reality.