Healey Vows to Combat Price Gouging Amid Iran Conflict Economic Impact
UK Chancellor John Healey has vowed to protect consumers from potential price exploitation amid the ongoing conflict in Iran, which is exacerbating the country's cost-of-living crisis. The government is closely monitoring major retailers for any signs of profiteering, despite currently finding 'no significant evidence' of price gouging.
The economic impact of the conflict is being felt across the nation, with rising energy prices and inflation concerns. The Bank of England has cautioned that further escalations in the Iran war could see inflation surpass 4% next year, intensifying financial stress for households.
A recent report from EY warns that if the Strait of Hormuz remains closed through 2027, the UK economy could slip into recession, with GDP growth slowing to 0.5% this year and potentially contracting by 0.2% next year. However, if the Strait reopens by the end of Q3 this year, a more optimistic outlook is predicted, with anticipated growth of 0.9% in 2026 and 1.2% in 2027.