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

Consumer confidence hit its lowest level since October 2023 this month, with surveys showing the cost pressures companies are facing

Confidence in the UK economy has fallen sharply amid the mounting economic fallout from the Iran war, surveys show, as businesses prepare to raise their prices and consumers brace for a fresh cost of living shock.

Highlighting the knock-on impact of the Middle East crisis in Britain, several closely-watched surveys of business activity and consumer confidence blamed the ongoing US-Israeli war on Iran for a marked deterioration in the outlook in April.