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 off the real income of the average UK household in 2026, and by a further £1,300 in 2027.
This adds up to a total of £70.4bn that will be wiped off UK households’ real disposable incomes by the Middle East conflict, according to the CEBR, an economic consultancy.
…
Energy bills across Great Britain are scheduled to rise in October, after the regulator, Ofgem, decided to lift its quarterly price cap by 4%.
Last week, the Energy and Climate Intelligence Unit thinktank (ECIU) calculated that higher wholesale oil and gas prices since the start of the US-Iran war, on 28 February, will add an estimated £9.8bn to UK energy and road transport costs. UK gas and electricity users face paying an extra £190m for each week the conflict continues, the ECIU found.
Original article at https://www.theguardian.com/business/2026/aug/31/uk-households-financial-hit-iran-war-inflation-wage-stagnation
