UK braces for price rises driven by Iran war as economic confidence plummets

"Neil Bellamy, consumer insights director at GfK, stated that soaring fuel prices and the prospect of higher energy costs serve as constant reminders of the inflationary shock from the war, leading to consumer jitters."

"The GfK consumer confidence index, which has been used to gauge sentiment since 1974, fell by four points to -25, indicating a significant decline in consumer sentiment amid rising economic pressures."

"The S&P Global purchasing managers' index revealed that UK service sector firms experienced the largest jump in costs since 1996, highlighting the inflationary pressures building in Britain due to the war."

"A separate survey by the CBI lobby group indicated that sentiment among UK industrial firms plunged at the fastest rate since the onset of the Covid pandemic, reflecting the severe economic impact of the ongoing crisis."

Confidence in the UK economy has significantly decreased due to the economic fallout from the Iran war. Surveys indicate a drop in consumer confidence to its lowest since October 2023. Businesses are facing increased cost pressures and expect to raise prices. The GfK consumer confidence index fell by four points to -25. The S&P Global purchasing managers' index reported the largest cost increase for UK service sector firms since 1996. Industrial sentiment has also plummeted, reflecting the broader economic strain caused by the conflict.

Read at www.theguardian.com