It has been a year since the UK voted to leave the EU and the pros and cons of this move have yet to fully surface.
This new infographic examines the Brexit effect on the pound and the impact of Brexit on the UK economy.
The value of the pound
In the 12 months since the British public voted to leave the EU, many people have been left asking why did the pound fall after Brexit?
The immediate aftermath of the vote saw the pound to dollar drop from 1.5 to 1.33 in a few hours. Following the recent political changes in the UK, the value of the pound has dropped again and remains at 1.28 against the dollar.
Before 23 June 2016, the pound was worth 1.3 against the Euro however, the rate has dropped significantly over the last 12 months. Since the outcome of Theresa May’s snap general election, the pound has slipped to around 1.12 against the euro.
According to Pound Sterling Live, the signing of a deal between the Conservatives and the DUP should allow the provision of a stable government which, in turn, should mean better news for the pound.
EU holidays and UK travel
There has been much debate about what Brexit might mean for UK travel – especially across Europe – and visa requirements for trips. These questions will be answers in time however, so far, the real impact has been seen by holidaymakers.
According to Hotels.com, the average European holiday has increased by 35% in price since Brexit. 90% of all holidays have increased in cost since June 2016.
Popular holiday operator, Thomas Cook expects Brits to pay 9% for their holidays in 2017.
Brexit impact on the food industry
Food prices after Brexit have seen stark increases. Dutch brand Unilever increased prices on some of its most popular products increase by 5.7% over the last year.
Alongside Unilever, supermarkets have seen Birdseye and popular crisp brand Walkers have increased prices by 12% due to the weakening of the pound and the rise in production costs.
Brexit and UK property prices
In the run up to the referendum, there was much debate about the Brexit impact on property prices and whether the UK’s decision to leave the EU will affect house prices.
UK property prices have continued to climb at a slower pace since the outcome of the vote, with house prices climbing by 3.3% in the year to May 2017.
An influx of overseas buyers, who have been enticed by the drop in the value of the pound, has helped to drive activity across the country.
According to JLL, Asian investors made up 28% of UK property transactions in 2016 – a 17% increase when compared to the previous year.
Surprisingly, petrol is one place where consumers have not seen significant changes. This is largely due to the simultaneous 6% decrease in the price of oil.
“Wholesale prices have remained relatively stable after an initial small upward jolt as a result of the pound falling on news of the referendum result,” Simon William, RAC fuel spokesman, said.