Hargreaves Lansdown’s senior economist Ben Brettell said household incomes would continue to feel the squeeze as wage growth fell 0.2% in real terms in the three months to March.
He said: “The economy has surprised on the upside since last summer’s referendum, powered by a resilient consumer, but it looks like households are now starting to feel the pinch from the current bout of inflation with GDP growth slowing to 0.3% in the first quarter of this year.
“Notwithstanding relatively weak wage growth, the UK labour market looks fairly robust – for now at least.”
