Millions are dipping into savings or borrowing to get by as the Iran war drives up prices, survey shows
The Iran war has led to a surge in pessimism in the UK as half of households are already struggling to afford everyday essentials.
The escalating conflict in the Middle East, which has driven the price of oil, gas, crop fertiliser and other raw materials sharply higher, threatens to cause another cost of living shock.
The latest Which? consumer insight tracker found that price pressures were forcing half of households, an estimated 14 million, to make at least one adjustment – dip into savings, sell possessions or borrow money – to cover the cost of essentials on a daily basis.
Confidence in the future of the UK economy plummeted by 13 points to a score of -56 in the month to 13 March, the lowest level recorded since the end of 2022, the tracker found.
Which? said this score reflected “a deep-seated pessimism across the country”, with two-thirds (67%) of UK adults now expecting the national economy to worsen over the next 12 months, while just 12% think it will improve.
Confidence has not yet reached the depths of the pandemic, when the score hit -78, or the 2022 cost of living crisis, when it fell to -70, but the drop highlights a growing strain as millions of households continue to struggle.
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Article continues at https://www.theguardian.com/business/2026/mar/30/pessimism-takes-root-uk-shoppers-struggle-essentials-iran-war-prices
