UK wage growth lags as Iran war weighs on cost of living

UK wage growth lags as Iran war weighs on cost of living

The ongoing Middle East crisis has led to soaring energy prices across the UK and much of Europe, further contributing to higher living costs.

Iran War drives British inflation higher and threatens new cost-of-living shock

By Ahmed AdelGlobal Research, August 18, 2026 A sharp rise in energy bills due to the war in Iran is expected to push up inflation, signaling a renewed cost-of-living crisis in the United Kingdom, according to The Guardian. The timing of the latest forecasts comes after a period when inflation had been trending in a more favorable direction.Official data had shown a clearer downward path of the inflation rate earlier in the year, raising hopes t…