UK households are already paying the cost of Brexit due to higher prices, a new study has shown.

The average worker has had to spend more than £404, equivalent to more than a week’s wages, in the first year after the Brexit vote, according to a report by the Centre for Competitive Advantage in the Global Economy (CAGE).

The findings suggested the average household had to spend £7.74 more per week to afford the same purchases the year after the referendum.

Join Independent Minds

For exclusive articles, events and an advertising-free read for just £5.99 €6.99 $9.99 a month

Get the best of The Independent

With an Independent Minds subscription for just £5.99 €6.99 $9.99 a month

Get the best of The Independent

Without the ads – for just £5.99 €6.99 $9.99 a month

Economics professor Dennis Novy, who contributed to the report, said: “It is clear that the average UK household is already paying the price for voting to leave the EU.

“The economic effects of leaving the EU will depend crucially on the outcome of the ongoing negotiations between the UK and the EU. But even before Brexit has actually taken place, the referendum shock of June 2016 has already had substantial economic costs for the typical household.”

James Kirkup, director of the Social Market Foundation, said: “Some politicians argue that no-one voted to be poorer in the EU referendum.

“This study shows that whatever voters' intentions, voting to leave the EU has already made everyone poorer.”

Researchers tried to establish how much of the recent increase in inflation was caused directly by the Brexit vote.

Inflation rose from 0.4 per cent in June 2016, when the referendum took place, to 2.6 per cent in June 2017, largely driven by weakness in the pound, which was a result of the vote.

Additional reporting by newswires

 


We’ll tell you what’s true.
You can form your own view.

At The Independent, no one tells us what to write. That’s why, in an era of political lies and Brexit bias, more readers are turning to an independent source. Please support us and enjoy extra exclusives, events, ebooks – all with no ads.

The Brexit deal for you. Subscribe now.

Comments

Share your thoughts and debate the big issues

Learn more
Please be respectful when making a comment and adhere to our Community Guidelines.
  • You may not agree with our views, or other users’, but please respond to them respectfully
  • Swearing, personal abuse, racism, sexism, homophobia and other discriminatory or inciteful language is not acceptable
  • Do not impersonate other users or reveal private information about third parties
  • We reserve the right to delete inappropriate posts and ban offending users without notification

You can find our Community Guidelines in full here.

  • Newest first
  • Oldest first
  • Most liked
  • Least liked
Loading comments...
Please be respectful when making a comment and adhere to our Community Guidelines.

Community Guidelines

  • You may not agree with our views, or other users’, but please respond to them respectfully
  • Swearing, personal abuse, racism, sexism, homophobia and other discriminatory or inciteful language is not acceptable
  • Do not impersonate other users or reveal private information about third parties
  • We reserve the right to delete inappropriate posts and ban offending users without notification

You can find our Community Guidelines in full here.

  • Newest first
  • Oldest first
  • Most liked
  • Least liked
Loading comments...