Pound falling and rising inflation fuel fears
An exchange rate sign in Paris The British economy’s post-Brexit vote bounce is losing momentum as the weak pound and higher inflation herald a squeeze in living standards, according to a Guardian analysis.
Although official growth figures to be published on Thursday are likely to show the economy will avoid recession in the second half of the year, the latest Guardian analysis of the post-referendum economy shows a more mixed picture.
The most notable shift over the last month was a further sharp fall in the value of the pound. Against the dollar, the pound is lingering around the $1.22 mark – about 18% lower than on 23 June, the day of the referendum.
At one point a “flash crash” in the currency markets pushed the pound briefly to about $1.15. It quickly recovered, but t...