BREXIT CANCELLED - pound surges in value, huge investment programme announced by business, consumer confidence and retail sales rise, the economy returns to good growth and high prospects, inflation shrinks.

Then I woke up but thought to reflect on an important Brexit effect that is impacting us all.

Retail sales, a key barometer of UK consumer confidence, was recorded as falling at the fastest quarterly rate in seven years.

This is an indication of a rising inflation rate, currently 2.6 per cent, up from just 0.6 per cent a year ago and its impact on curbing consumer spending.

The 2.6 per cent inflation rate is higher than average wage growth so we all have less to spend.

The Bank of England is predicting a further slowdown if inflation rises to an expected 3 per cent.

Buying essentials such as food is also becoming more expensive as food inflation is rising quickly also up to plus 2.6 per cent whereas in 2016 the average was negative around minus 2.2 per cent before the referendum vote with supermarkets holding food prices in check.

This is the impact of the weakness of the pound causing imported products including food to be 16 per cent more expensive.

UK economic growth was 0.3 per cent in the second quarter, partly due to reduced consumer spending, down from 0.7% in the same period last year. The Eurozone economy is showing good strength averaging 0.6 per cent growth, with Spain at 0.9 per cent, Italy at 0.4 per cent and Romania at 5.7 per cent.

Low confidence in our economy weakens our currency increasing the cost of imported goods, while our Eurozone neighbours are seeing increasing strength in their currency. This is due to losses for Eurosceptic parties in Austria, France and the Netherlands demonstrating a desire to remain in the EU.