The consequences of the Brexit vote for UK inflation and living standards: First evidence
Holger Breinlich, Elsa Leromain, Dennis Novy, Thomas Sampson
20 November 2017
On 23 June 2016, the UK voted to leave the EU. As soon as the result became clear, sterling depreciated sharply and, since the vote, UK inflation has dramatically increased. This column asks how much of the rise in inflation is due to the referendum. It finds that the referendum result pushed up UK inflation by 1.7 percentage points, which amounts to an annual (and potentially permanent) cost of £404 for the average British household.