UK households 'paying the price' for Brexit
Households are more than £800 a year worse off as a result of Brexit, an economic study has found.
Today's report revealed that the average household is paying £404 a year extra due to price inflation. At the same time the average worker has lost £448, the equivalent of one week's pay, due to a stagnation in wage growth.
Dr Thomas Sampson, who co-authored the Centre for Economic Performance research, said: "Even before Brexit occurs, the increase in inflation caused by the Leave vote has already hurt UK households.
"Our results provide compelling evidence that, so far, UK households are paying an economic price for voting to leave the EU."
Dr Sampson's research revealed that the rise in inflation has been lowest for households in London while Scotland, Wales and especially Northern Ireland have been worst hit.
According to the report the largest inflationary effects have been on product groups with high import shares.
These include bread and cereals; milk, cheese and eggs; coffee, tea and cocoa; beer and wine; furniture and furnishings.
The rise in food prices has led think tank the Food Foundation to raise concerns that "five-a-day" may become unaffordable for millions of Britons.
In a new report, the foundation has claimed that in a no-deal Brexit scenario, price rises would mean the poorest 10% of the population could spend half of their entire food and drink budget to meet current Government guidance for fruit and veg. The report goes on to identify 16 of our 50 favourite fruit and veg which could be grown more in the UK, meaning less reliance on imports and more competitive prices.
Anna Taylor, executive director of the Food Foundation, said: "The Government faces a clear choice to boost British harvests of fruit and veg or the NHS will reap the consequences. It is absolutely crucial that the Government grabs the bull by the horns before the Brexit boat sails."