UK households will take £2,400 financial hit from Iran war, analysis shows
Centre for Economics and Business Research calculates effect of inflation and wage stagnation to end of 2027 UK households will have suffered a £2,400 financial hit, on average, from the Iran war by the end of 2027, new analysis shows. The Centre for Economics and Business Research (CEBR) has calculated that the jump in inflation since the conflict began, and weaker wage growth, will knock £1,100…
UK households face a £2,400 financial hit from the Iran war, predicts analysis. The Centre for Economics and Business Research (CEBR) calculates the average UK household will lose £1,100 in real income by 2026, with an additional £1,300 in 2027, adding up to a total loss of £70.4bn. The economic shock from the Strait of Hormuz's closure affects households through rising energy costs and weaker wage growth, leading to reduced spending power and hurt economic growth.
Despite the Bank of England's expectation for interest rates cuts, borrowing costs remain unchanged, with City traders anticipating one rate rise by December. The conflict's financial impact will persist until energy markets stabilize, as Ofgem decides to raise energy bills in October by 4%.
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