Whitbread plc, which runs British brands such as Costa Coffee and Premier Inn hotels, has warned of the impact of a tougher consumer environment, sending its shares seven per cent lower.

Rising inflation and muted wage growth following Britain’s vote to leave the European Union last June is forcing many consumers to rein in their spending.

“Indications suggest that there is going to be some constraint on (the) pound in the average consumer pocket with inflation and higher petrol prices and a relatively static wage position,” chief executive Alison Brittain told reporters.