Inflation hints at British slump

British consumers are feeling the strain of rising prices caused by last year’s Brexit vote, suggesting the economy is heading for a slowdown just as London gears up for divorce talks with the EU, surveys and data showed yesterday.

After helping the economy withstand the immediate Brexit shock last year, consumers are reining in spending on non-essentials as prices for day-to-day shopping rise, the British Retail Consortium (BRC) industry group and credit card provider Barclaycard said.

Separate data from market research firm Kantar Worldpanel showed the inflation rate for groceries doubling in the space of a month as prices for food staples including butter, tea, and fish all rose.