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>> Britain, feeling the pinch of rising inflation boosted by last year's Brexit vote. The UK economy is slowing sharply in the first three months of this year. Gross domestic product slumping to 0.3%. Down from 0.7 in the last quarter of 2016. Reuters UK economics correspondent David Milliken says, much of the downturn is due to Britain's services sector, which makes up nearly 80% of the economy.
>> And that slowed sort of particularly sharply and sort of really dragged down sort of the rest of growth. I think it was probably about its sharpest slowdown in a couple of years, which is pushing GDP growth down to its weakest in about a year. And sort of within that, it's very much sort of sectors which service the British consumer that have been doing badly.
>> Last year's Brexit vote making things worse, causing a big fall in the value of sterling. That impact beginning to eat into the wallets of consumers. Resulting in retailers and hotels bearing the brunt of a lack of spare cash. Britain's Finance Minister Philip Hammond says the economy remains resilient.
But Friday's figures are the clearest sign so far the country is slowing in the run up to June's early election. And many expect the downturn to continue.>> This shouldn't be a seasonal factor. And there's certainly sort of somewhat longer term pressures inflations expected to sorta rise further, eating further into sort of households disposable income for over the course of this year.
And so that's something that's sorta is likely to continue to weigh on growth going forward.>> Despite the pick up in inflation, the Bank of England is widely expected to keep interest rates at their record low of 0.25%. Waiting to see the full impact of Brexit on the country's economy.