UK households saw a 0.8% drop in real disposable income in Q1 due to rising inflation and capital gains tax, marking the fourth decline in five quarters. The ONS reported 0.6% GDP growth, while political figures like Andy Burnham pledge to tackle living costs, and economists forecast a cautious economic outlook.
UK inflation dropped to 2.8% in April, down from 3.3% in March, driven by a lower household energy price cap. While welcome, the slowdown may be temporary as fuel costs rise due to the Middle East conflict.
UK inflation rose to 3.3% in March from 3% in February, driven by the biggest fuel price jump in over three years following the Iran war. Petrol prices rose 8.6p to 140.2p a litre and diesel jumped 17.6p to 158.7p, while food inflation climbed to 3.7%. The IMF warns Britain faces the sharpest growth slowdown in the G7, with inflation potentially peaking between 3.5-5% depending on Middle East developments.
UK inflation rose to 3.3% in March from 3% in February, matching economists' forecasts, as fuel prices surged following the outbreak of the US-Israeli war on Iran. The conflict has pushed global oil prices to around $100/barrel and threatened supplies through the Strait of Hormuz. The IMF warned Britain faces the sharpest growth slowdown and joint highest inflation in the G7 this year. The Bank of England held interest rates steady but cautioned that prolonged conflict could force borrowing cost increases.
