Impact of Brexit on UK inflation
The Bank of England estimates that Brexit accelerated the rise in inflation and the slowdown in the economy, as well as a drop in wages
The Brexit balances the financial scenario of the United Kingdom once again due to its effects, according to the Bank of England, in the accelerated increase in inflation.
According to recent estimates by Swati Dhingra, a member of the Bank of England’s Monetary Policy Committee, the United Kingdom’s departure from the European Union has been the main cause of the increase in the prices of all goods and services.
But the effect of Brexit does not stop there. Well, according to Dhingra, it also has a high incidence in a drop in wages compared to “other advanced economies.”
Dhingra said on Wednesday: “It is undeniable that we are seeing a much greater slowdown in trade in the UK, compared to the rest of the world,” during his speech in the House of Commons Treasury committee.
The economist stressed that Brexit has pushed workers’ wages to be 2.6 % below what they could have been; At the same time, it has generated an increase in the price of food of 6 %.
For its part, the National Statistics Office (NSO) pointed out that the “consumer price index (CPI) of the United Kingdom stood at 11.1 % in October, compared to 10.1 % in September”, with what which reach “the highest level in 41 years”.
M.Pino
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Source: DW
