Workers flee Britain to escape soaring prices

Inflation hit 7% in March and the Bank of England has warned it could hit 10% this year. Meanwhile, fiscal pressure is on track to reach its highest level since the 1940s.

Jason Porter of Blevins Franks, a financial adviser for expats, said there had been a “tremendous” increase in the number of people looking to move abroad this year.

“People are paying way more for everything and that’s a culmination of bad news. It makes people think they need a fresh start and they know they will have a much cheaper life abroad,” he said.

Inflation is rising globally, but higher wages and a cheaper cost of living mean that many foreign countries are still attractive.

Mr Porter said: “Other countries like France, Spain or Portugal are starting from a much lower point because the cost of living was so much cheaper and it will remain so even if they have a high inflation.”

Even a move to America, where inflation stands at 8.5%, a 40-year high, could prove profitable for Britons. The average cost of living is 1% cheaper here in the UK, but lower wages leave British workers worse off than their American counterparts. The average UK after-tax salary is enough to cover living expenses for 1.6 months compared to 2 months in the US, according to analyst Livingcost.

Australia also raised interest rates to fight inflation, raising the bank rate for the first time in 11 years to 0.35% from 0.1% previously. This follows price increases of 5.1% on the year to March. As in America, Australian after-tax wages stretch to cover more living expenses than British wages.

Europe is struggling with rising inflation, but some countries are doing better than others. France’s national consumer price index reached 4.8% in April, while Spanish consumer prices rose 8.4%. Both generally have a lower cost of living than Britain.

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