GRAHAM HISCOTT Sterling hits a post-brexit high Pound rallies as unemployment falls

THE pound jumped to a post-brexit vote high yesterday.

Sterling spiked 1.5% against the dollar to $1.42. It was also up strongly against the euro.

The currency’s recovery since last June’s vote to quit the EU should, if it continues, ease the pressure on millions of cashstrapped households.

The pound’s weakness is a big reason inflation shot up last year, because it made imports more expensive.

Its rise – especially against the euro – should eventually make what we buy from abroad cheaper.

Yesterday’s sterling surge saw the FTSE tumble, however, as it dents the value of what big firms make overseas. A stronger pound also hits UK exporters, although that is likely to be outweighed by a pick-up in the global economy.

Paul Hollingsworth, of consultants Capital Economics, said: “It should help households over time.” The recovery followed figures from the Office for National Statistics showing the number of people in work rose by 102,000 to 32.2 million in the three months to November.

Unemployment fell by 3,000 to 1.44m, but rose in four regions – London, Yorkshire and Humber, the West Midlands and the South West. Wage growth remained at 2.5%, well behind inflation at 3%.

Work and Pensions Secretary Esther Mcvey said:

“Nearly half a million more people have the security of a job and a pay packet than this time last year, and wages are rising.”

But Labour’s Debbie Abrahams said: “Real wages are falling and millions are trapped in lowpaid, insecure work while the cost of basic essentials soars.”

TUC general secretary Frances O’grady added: “Companies have been reporting healthy profits for the last year, but they are not passing on a fair share of profits to their workers.”

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