Brexit is driving inflation higher in the UK than its European peers | Peterson Institute for International Economics

“By ending the free movement of EU migrant workers to the UK, the British government has unilaterally cut the labor supply and its elasticity. By adding new tariff and non-tariff trade barriers, the government has slashed purchasing power and available imports and it has created inflation during the staggered implementation of the Brexit deal. By creating uncertainty about UK economic policy and investment prospects, Brexit has weakened the anchor for inflation expectations.”

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