Brexit 'partly to blame for record UK inflation'

Cyclists near the Bank of England in London. The central bank has estimated that leaving the European Union will cost the UK 3% in permanently lost national output.

Brexit is partly to blame for historically high inflation in the UK by causing labour shortages, strengthening pricing pressure among firms, and weakening the economy, Bank of England chief economist Huw Pill has said.

The central bank has estimated that leaving the European Union will cost the UK 3% in permanently lost national output within 15 years and has seen no reason to change the assumption, he added.