UK economic growth slows to 0.3% ahead of General Election

The UK economy grew by 0.3% in the first three months of the year, according to worse-than-expected official figures suggesting a Brexit-linked slowdown.

The Office for National Statistics (ONS) said retail sales were the biggest drag on first quarter growth.

The first estimate - which is subject to revision as more information becomes available - marked a sharp slowdown on the 0.7% growth achieved in the final quarter of 2016.

Economists had been expecting a figure of 0.4% amid clear evidence of a squeeze on household budgets.

The ONS had previously reported the biggest fall in trade for retailers in seven years over the three months as prices rise, reflecting higher import costs feeding through as a consequence of the pound's slump in value since the referendum.

The annual rate of inflation currently stands at 2.3% - with wage rises falling to growth of 2.2% - highlighting a growing pressure on household spending power.

Grocery bills are on the march despite a rumbling price war continuing while energy firms have piled on the misery, citing higher costs for raising standard tariffs.

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