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Evening Standard
Evening Standard
Holly Williams

Households to slam brakes on spending as Iran war sends cost surging, warns EY

Consumer spending is set to pull back sharply as an inflation spike caused by the Iran war takes its toll on household finances and the wider economy, according to a report. (Alamy/PA) -

Consumer spending is set to pull back sharply as an inflation spike caused by the Iran war takes its toll on household finances and the wider economy, according to a report.

EY’s economic outlook shows UK consumer spending growth will grind almost to a halt, at a predicted 0.3% for 2026, down from the 0.9% predicted before the conflict.

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