Microsoft raising prices by up to 22% due to Brexit…but it says only businesses will pay more
Microsoft is the latest brand to announce a price increase due to the weak pound
MICROSOFT is to increase prices by as much as 22 per cent because of Brexit - but it says that only business will suffer.
The software firm blamed the move on the British pound. The value of Sterling has plummeted following the vote to leave the EU.
Microsoft is one of the biggest business software sellers in the UK, including its popular Word, Powerpoint and Outlook programmes.
It’s likely to be a big blow for firms who may have to increase IT budgets or sacrifice other projects to pay for the increase.
The price rise, which comes into effect at the start of next year, could also cost the Government tens of millions of pounds.
The change will only apply to new purchases, rather than ongoing contracts.
Microsoft said that software prices would be increasing 13 per cent and that cloud costs would go up by 22 per cent, to help “harmonise prices”.
A spokesperson from Microsoft said that it would not be increasing prices for consumers.
It comes just a few days after Nestle warned that it may have to hike the price of Kitkats, coffee and other products, due to the Sterling fall.
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Earlier this month Tesco stopped selling dozens of Unilever products after the consumer goods brand decided to put up its prices to supermarkets by 10 per cent.
The pound has fallen by as much as 10 per cent against the Euro and Dollar since June.
Experts, including Mark Carney, the Governor of the Bank of England, has said that prices at supermarkets will also go up.
He also warned that some supermarkets may shrink packet sizes and switch to cheaper ingredients to combat rising prices.
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