Food prices will 'very likely go up' when Brexit happens due to weak pound, says Tesco boss

His comments come after consumer good giants Unilever attempted to pass a 10 per cent price increase to Tesco earlier this month

Allan believes inflation will inevitably “nudge up" by two or three per cent with food prices contributing to the increase (Getty Images/iStockphoto)

The boss of Tesco has warned customers to brace themselves for prices rises as Britain negotiates its way out of the EU.

John Allan, the supermarket’s chairman, said it was “very likely” that the cost of some products would go up due to the slump in the value of the pound after the shock EU referendum result.

Sterling was trading below $1.22 on Wednesday morning, about 18 per cent lower than before than the EU referendum in June and has briefly hit a new six-year low against the euro last week.

Speaking to BBC radio, Allan said: “We are trying to defend our customers from unjustified price increases but that it is likely there will be some price increases going forward, I think is very likely.”

His comments come after consumer good giants Unilever attempted to pass a 10 per cent price increase to Tesco earlier this month. The 24-hour pricing row saw Tesco briefly suspending online sale of Marmite and other popular brands.

Allan believes inflation will inevitably “nudge up" by two or three per cent with food prices contributing to the increase. However, he dismissed claims that price rises would as dramatic as 10 per cent.

The supermarket boss also warned against the Government’s plans to clamp down on immigration from the EU in the event of a hard Brexit.

He said: “Industries like the agriculture industry, picking and packing fruit and veg and meat, are heavily dependent on migrant workers, not just seasonal migrant workers but people who are here 52 weeks a year."

"Our fresh food suppliers are very concerned that is properly taken into account.”

“We don’t just need brain surgeons and architects. We need many people who do much more ordinary but nonetheless extremely important jobs.”

Fears of the consequences of a Hard Brexit - which means leaving the single market and an end to freedom of movement.- have sent the pound tumbling to a new 31-year low against the dollar earlier this month.