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Rachel Reeves has said Britain’s economy faces heightened risks of an inflation shock from a spiralling conflict in the Middle East.
Speaking to journalists ahead of a trip to the Liverpool city region today to announce a multibillion pound investment in carbon capture and storage, the chancellor said the Treasury was closely monitoring developments amid escalating tensions between Israel and Iran.
“This is a very real risk to the UK and global economy
“There’s a risk both on inflation and on GDP. It’s something we’ll keep a close eye on, these things. So far the response has been quite minimal but obviously these are important things to keep an eye on.”
“The biggest impact so far in terms of economics of what’s happening in the Middle East is on shipping costs.”.
