UK Warns Retailers Over Iran War Price Hikes as BoE Sees Inflation Topping 4%
Updated
Updated · The Guardian · Aug 2
UK Warns Retailers Over Iran War Price Hikes as BoE Sees Inflation Topping 4%
3 articles · Updated · The Guardian · Aug 2
Summary
John Healey said ministers are ready to stop consumers being “taken for a ride at the pump or the till” as the Iran war lifts food and fuel costs, though he said there is no significant evidence of gouging yet.
The warning reflects a renewed cost-of-living squeeze from the Middle East energy shock, which Healey said is hitting household finances and raising costs for businesses and government.
Last week the Bank of England held interest rates steady and warned a further escalation in the conflict could push UK inflation above 4% next year.
Retailers pushed back quickly: the British Retail Consortium said ministers should focus on tax rises such as employers’ national insurance and business rates, arguing supermarket competition already keeps food prices low.