Eurozone inflation falls as cost of living squeeze eases; Brexit a ‘historic economic error’ – business live

Eurozone inflation eased more than expected last month, as former US Treasury secretary Larry Summers warns Brexit helped to drive up UK inflation

Brexit will be known as ‘historic economic error’, says former US treasury secretary

Brexit was a “historic economic error” which has hurt the UK economy and helped to drive up inflation, Larry Summers, the former US Treasury secretary has warned.

Summers told Radio 4’s Today programme that UK economic policy has been “substantially flawed for some years,” and singles out the exit from the European Union as a factor driving up costs.

I think Brexit will be remembered as a historic economic error that reduced the competitiveness of the UK economy, put downward pressure on the pound and upwards pressure on prices, limited imports of goods and limited in some ways the supply of labour.

All of which contributed to higher inflation.

I think that was reinforced by very ill-judged monetary policies that were substantially too expansionary for too long.

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