Lean years for UK – experts

– British Prime Minister Theresa May has “timed well” this Thursday’s snap general election because Britons face a major squeeze on consumer spending in the coming years, economists say.

The UK economy is in relatively good shape despite a first-quarter slowdown to growth and has mostly defied gloomy predictions since voting last year for Brexit.

“The election has been timed well in terms of how UK households are likely to fare over the coming years,” said Scott Corfe, director at the Centre for Economics and Business Research. “Wage growth shows little sign of picking up and the era of near-zero inflation has come to an end, meaning that the squeeze on consumer spending power has returned.”

British inflation hit a 3.5-year high in April, owing mainly to higher airfares as a weak Brexit-hit pound raises import costs.

The consumer price index struck 2.7% and forecasters are expecting it to strike 3% by yearend. With wages growth weak, people’s purchasing power is being eroded by the inflation hike.

Economic data meanwhile is pointing to weaker economic growth as Britain negotiates its exit from the European Union.

Labour Party leader Jeremy Corbyn has gained ground on May’s Conservatives in opinion polls amid worries over growing inequality in Britain. – AFP