The British economy is losing momentum following a post-EU referendum bounce, as the weak pound and higher inflation signal a fall in living standards, according to new analysis.
The latest Guardian analysis of the post-Brexit economy shows a sharp fall in the value of the British currency against the US dollar.
The pound is hovering around $1.22, about 18 percent lower than on June 23, the day of the referendum.
“The underlying pressure on the currency has remained following [UK Prime Minister] Theresa May’s declaration that she will trigger article 50 before the end of March 2017,” the report said.
Inflation also jumped more sharply than expected to 1 percent, the highest level in almost two years, while the UK trade deficit with the rest of the world widened, according to the analysis.
“Four months on from the Brexit vote, there are warning signs that consumers should prepare for a renewed squeeze in living standards, as the weak pound drives…