Brexit will reduce inflation-hit wages

• Report predicts that by the end of the decade, Brexit will reduce real wages by 1.8%.
• This translated to a loss of £470 ($577) per worker per year.
• The analysis was conducted by the Resolution Foundation think tank and the London School of Economics.

According to a report released on Wednesday, Britain’s exit from the European Union will significantly reduce worker pay in the next few years.

The country is already facing a cost-of-living problem due to surging inflation.

Read more: The EU has filed a lawsuit against the UK over post-Brexit changes

And Wednesday’s research claimed that Brexit had impacted the openness and international competitiveness of the British economy.

As a result, household incomes, which were already under tremendous pressure from soaring inflation, were anticipated to decrease further.

The research stated that “it will take many years for the economy to adjust … but the aggregate effect will be to reduce household incomes as a result of a weaker pound, and lower investment and trade.”

In addition, a lower pound pushed up import prices, the report said.

The analysis predicts that by the end of the decade, Brexit will reduce real wages — or earnings adjusted for inflation — by 1.8%.

According to the report, this translated to a loss of £470 ($577) per worker per year.

Read more: From Brexit Highs To ‘Partygate’ Lows: Johnson’s Woes

Instead, the impact of Brexit should be viewed as a widespread decline in worker income and productivity.