Morrisons hikes price of Marmite, weeks after Tesco price row with Unilever

Morrisons has started charging more for a jar of Marmite - weeks after a price row broke out between the spread's maker and rival supermarket Tesco (Frankfurt: 852647 - news) .

Morrisons has raised the price by 12.5% - putting the cost of a 250g pot of Marmite at £2.64, according to The Grocer magazine.

The hike comes two weeks after a public row broke out between Tesco and manufacturer Unilever (NYSE: UL - news) .

Tesco was asked to stomach a 10% hike in the price of the yeast extract spread, with Unilever saying it was because of rising import costs due to the collapse in the value of the pound following the UK's vote to leave the EU.

The supermarket chain refused and Unilever stopped deliveries to its stores, leading to some shortages.

The spat, which became known as 'Marmitegate', was resolved within 24 hours but no details were disclosed about what arrangement they had reached.

Morrisons did not go into detail on its negotiations with Unilever. It said: "Sometimes we have to increase prices as a result of costs rising although we do our best to avoid this."

Unilever, which supplies a range of household brands, has warned its products will get more expensive as a result of the collapse in sterling.

:: Marmite and mates the new front line in Brexit war

Since the EU referendum, the pound has lost nearly 20% of its value against the dollar.

British consumers are bracing for price hikes across the board as import costs soar.

The owner of British Airways, IAG, has warned ticket prices may have to rise, and Microsoft (Euronext: MSF.NX - news) is putting up prices for British businesses by as much as 22%.

Both companies blame the collapse in sterling.