Households are more than £400 a year worse off as a result of Brexit-induced inflation, a new study has found.
A report by the Centre for Economic Performance has revealed that the average household is paying £404 a year extra due to price inflation.
An alternative calculation of the loss showed that higher inflation has reduced the real wages of the average worker by around £448, the equivalent of one week’s pay.
Dr Thomas Sampson, who co-authored the 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 suggests Scotland, Wales and especially Northern Ireland have been worst hit by the rise in inflation but the effect has been less pronounced in Remain-voting London.
According to the report, the largest inflationary effects have been on products which are typically imported from overseas.
These include bread …