The latest GDP data suggests continued high energy prices are starting to weigh on growth Photograph: Marcin Rogozinski/AlamyView image in fullscreenThe latest GDP data suggests continued high energy prices are starting to weigh on growth Photograph: Marcin Rogozinski/AlamyUK economic growth slows down as Iran war pushes up energy pricesGDP expanded by 0.4% in three months to June, down from 0.6% in the first quarter, says ONS
Economic growth slowed in the second quarter of the year, as the disruption unleashed by the Iran war began to take its toll, official figures show.
The Office for National Statistics (ONS) said GDP expanded by 0.4% in the three months to June, down from 0.6% in the first quarter, in line with City economists’ expectations.
The UK economy had been more resilient in the face of the ongoing Middle East conflict than some analysts feared.
Read moreBut the latest data suggests continued high energy prices are starting to weigh on growth.
The news comes as the new chancellor, John Healey, prepares to present his first budget on 28 October.
With energy prices remaining high, he could come under pressure to offer additional support to households this winter.
Andy Burnham announced a VAT cut for electricity bills last month, but told the BBC on Wednesday that he would like to go further. “I can accept criticism that this isn’t enough, because I wouldn’t say it’s enough,” he said.
Inflation figures for July will be published next week and are expected to show a higher reading than June’s 2.6%, reflecting rising utility bills. Sustained high inflation will increase pressure on the Bank of England to raise interest rates.
