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United Kingdom·Trade & Economy·Energy

UK households cut back spending at fastest rate in 18 months amid Middle East fears

Tuesday, 12 May 2026, 06:27 · 1 min read

British consumers sharply reduced their spending in April, with card transaction data from Barclays showing a 0.1% year-on-year decline — the first such fall since November 2024 and the steepest pullback in 18 months. Non-essential categories led the retreat, with travel down 5.7% and overall discretionary spending falling 0.3%, while fuel costs surged 10.4% as the ongoing conflict involving Iran rattled energy markets and global supply chains. The Bank of England has warned that higher inflation is now "unavoidable," with household energy bills forecast to rise 16% to £1,900 by summer and food prices expected to climb 7% by year-end, leaving 72% of consumers surveyed by Barclays anticipating a direct impact on their cost of living throughout 2026.

Sources
The GuardianUK households cut back spending at fastest rate in 18 months, Barclays says ↗︎
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