Blitz Bureau
NEW DELHI: Surging energy prices triggered by escalating tensions in the Middle East are set to weigh on British households, with new analysis pointing to a deterioration in living standards as global oil markets remain volatile.
According to a report released recently by the Resolution Foundation, the median working-age households in Britain are projected to be about 480 pounds (about $650) worse off over the current financial year than previously expected, as higher energy costs push up inflation and erode real incomes.
The think tank said typical household income, once forecast to grow by 0.9 per cent, is now expected to decline by 0.6 per cent, underscoring the broad impact of higher energy costs, Xinhua news agency reported. The strategic waterway, Strait of Hormuz, a key chokepoint for global oil shipments, has effectively remained closed since the conflict began, driving sharp gains in oil and gas prices and heightening concerns over inflation and global growth.
“Despite hopes for a sustained peace, the path of this conflict remains uncertain and energy prices remain well above pre-war levels, meaning many households face a decline in their purchasing power this year,” said James Smith, the foundation’s chief economist.
