LSE Brexit blog:
UK households are already paying an average of #404pa for Brexit
22 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. How much of the rise in inflation is due to the referendum? Holger Breinlich, Elsa Leromain, Dennis Novy, and Thomas Sampson, (LSE’s Centre for Economic Performance) find that the referendum result pushed up UK inflation by 1.7 percentage points. This amounts to an annual (and potentially permanent) cost of £404 for the average British household. UK households are thus already paying a high economic price for the vote to leave the European Union.