Brexit has fuelled surge in UK food prices, says Bank of England policymaker

Swati Dhingra says exit from the EU is worsening the UK’s cost of living crisis. Photograph: Christopher Furlong/Getty Images

Brexit is contributing to a surge in food prices as the country heads into recession, a senior Bank of England policymaker has warned.

Swati Dhingra – the newest member of the Bank’s monetary policy committee (MPC), which sets interest rates – also used an interview with the Observer to suggest that the coming run of central bank rate rises should peak below 4.5%, which is the level that some City investors are expecting. “The market is probably underestimating what damage that [level of interest rates] might cause to the UK economy,” she said.