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Brexit to further slash inflation-hit wages

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Britain’s exit from the European Union will further slash workers’ wages in coming years, a study concluded Wednesday as the nation already faces a cost-of-living crisis from soaring inflation.

The research, from the Resolution Foundation, a think tank and the London School of Economics, was published as official data showed UK inflation hitting a new 40-year peak at 9.1 percent.

And Wednesday’s report claimed that Brexit had hit the UK economy’s openness and competitiveness abroad.

As a result, household incomes — already under intense pressure from rocketing inflation — were forecast to slide further.

“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,” the report read.

A weaker pound had also ramped up import costs, it added.

The report forecast that Brexit would cause a 1.8-percent drop to real wages — or earnings adjusted for inflation — by the end of the decade.

That equated to a loss of £470 ($577) per worker per year, it added.

“Brexit is not… expected to transform the nature of the UK economy,” the report concluded.

“Instead, the impact of Brexit is better thought of as a broad-based reduction in workers’ pay and productivity.”