People in Britain could face higher energy, food and flight ticket prices for at least eight months after the end of the US-Israel war with Iran, senior British government officials said.
As reported BBC, Darren Jones, chief secretary to the Prime Minister, said the government is “looking at all those things” as it puts forward plans to address potential food and fuel shortages caused by the war.
Last week, the International Monetary Fund (IMF) predicted that the energy shock from the war would hit Britain the hardest among the world’s most developed economies and cut its forecast for Britain’s growth this year to 0.8% from 1.3%.
Jones has previously said that although the government will do everything in its power to find a permanent solution to the crisis and minimize its impact, “what happens abroad will still affect us at home.”
It comes as the conflict has slowed or halted energy production and transportation across the Middle East, causing supply chain issues and driving up prices globally.
Earlier this month, government officials predicted a worst-case scenario of food shortages, including chicken and pork, by the summer if the war continued.
The government is also trying to calm the public, urging drivers to keep filling up petrol and use cars as usual and not change their travel plans amid fears of possible jet fuel shortages.
Speaking with Laura Kuenssberg on BBC’s Sunday, Jones said he was looking at the economic impact of the war “in great detail”, but said it was more likely to be “price pressure” than gaps on supermarket shelves.
“Our best estimate is eight-plus months from the point of resolution, when you will see the economic impact through the system,” he said.
“So as a result of what Donald Trump has done in the Middle East, people will have higher energy prices, food prices…. and flight ticket prices.”
Britain’s Prime Minister, Keir Starmer, was also concerned by the situation and announced he would chair another meeting of a cabinet committee on Tuesday to chart a way to deal with any shortages, while a group of ministers is also meeting twice a week to monitor stock levels and any disruption to supply chains amid global economic challenges.
Starmer said, “This is not our war. The government made the right call to stay out of the conflict and take only defensive action to protect Britain’s interests.”
“We are taking action now to prepare for and, where possible, mitigate the impact on our economy and domestic security as a result of the conflict,” he said.
