Brexit’s stark impact on UK food prices confirmed United Kingdom By aljmaheerpress Last updated Nov 17, 2022 0 Share Sign up for our free Brexit and more email for the latest on what Brexit means for the UK Sign up for our Brexit email for the latest insight Brexit has added 6 percent to UK food prices, a Bank of England official said as inflation reached its highest point in 41 years.Dr.Swati Dhingra also said British workers had taken a 2 percent real wage cut following the UK’s departure from the EU, when members of the bank’s Monetary Policy Committee (MPC) appeared before parliament’s Treasury Committee.Living standards around the world are under tremendous pressure this year due to record inflation, particularly in food and energy prices, but Dr.Dhingra said Britain would suffer more as a direct result of leaving the EU.“There is no denying that we are now seeing a much greater slowdown in trade in the UK than in the rest of the world,” Dr Dhingra, who is also an associate professor at the London School of Economics (LSE), told MPS.
She said British households had seen their spending on groceries rise 6 percent higher than other countries in recent years, citing research by LSE students into the impact of the UK’s worse trading conditions since Brexit.She added: “The simple way to think about what Brexit has done to the economy is that in the post-referendum period there was the biggest depreciation that one of the world’s four largest economies has gone from one to the next.seen another day.“That has contributed to rising prices and lower wages…we think that number is about 2.6 percent below the trend that real wages would otherwise have been.” She said this was followed by reduced business investment and trade figures were now reacting to the impact of the Brexit deal the UK signed with the EU.
Andrew Bailey, governor of the Bank of England, said the UK economy recovered from the shock of the Covid-19 pandemic much worse than that of the eurozone and the US.Despite this, he said, the effects of Brexit so far have been unsurprising and stuck with the bank’s long-term estimate that UK productivity would fall by around 3% over the long term.Bailey before the Treasury Committee on Wednesday (FATHER) “This one [estimate] was done quite soon after the referendum, it essentially assumes there is a long-term decline in productivity levels, just over 3 percent,” he said.“As a government official, I am neutral on Brexit per se, but I am not neutral when I say that we believe these are the most likely economic consequences.” The bank chief’s appearance before the Treasury Committee comes days after a former MPC member said Brexit had “permanently damaged” the UK economy.“It has significantly reduced the economy’s potential output, eroded business investment,” said economist Michael Saunders, adding, “If we hadn’t had Brexit, we probably wouldn’t be talking about an austerity budget this week.” 0 Share.
