Failure to strike a good Brexit deal in 2019 will push up prices in the shops, The British Retail Consortium (BRC) has warned.
The trade body also warned reverting to World Trade Organization (WTO) rules could see tariffs on clothes of up to 16% and on meat of up to 27%.
It follows a similar warning from the Confederation of British Industries last week.
The BRC points out that as well as higher prices, some products, such as New Zealand lamb, are subject to European Union import quotas, so could become cheaper outside the EU.
But it stresses that overall prices would rise and shopkeepers would struggle to absorb those higher prices.
The fall in the value of the pound sterling since the June referendum, a trend that accelerated last week to leave the pound at its lowest against the U.S. dollar for 31 years and at five-year lows against the euro, already means any goods brought in from outside the U.K. will cost more.
The BRC argues that prices have been squeezed so low that profit margins are too small to be eroded further.
