Consumers are likely to be squeezed this year as inflation rises and real wages fall, Bank of England Governor Mark Carney warned today.
This year will be "a more challenging time for British households" and "wages won't keep up with prices", he said.
It came as the bank cut UK economic growth forecasts for 2017 from 2% to 1.9%, and raised its forecast for inflation this year to 2.7% from its February forecast of 2.4%.
Commenting, Peter Kyle MP, leading supporter of the Open Britain campaign:
“The Brexit squeeze has started. This is a consequence of the Prime Minister’s decision to leave the Single Market and pursue a hard Brexit, against the interests of working people.
“The evidence is clear – the post-Brexit fall in the pound has pushed up prices in the shops, fuelling higher inflation and making families worse off. And all this at a time when our economy is showing signs of difficulty, and wage growth is not keeping up with prices.
“This shows the dangers of a hard Brexit that would pull Britain out of the Single Market and Customs Union, damaging our trade and raising prices still further. At this election, we need as many MPs who will oppose a hard Brexit as possible in Parliament.
Notes to editors:
The story is reported here: http://www.bbc.co.uk/news/business-39880844