0821 GMT - U.K. inflation's downward trend over the last six months is likely to be challenged as the Iran war puts pressure on input prices and supply chains, says Pieter Reynders, partner at McKinsey & Co. Annual inflation was unchanged in February at 3.0%, having fallen from 3.8% in September. There was a welcome easing in food and nonalcoholic beverages, though some nonessential categories, such as restaurants and hotels remained elevated, he says in a note. "Inflation remains the top concern for U.K. consumers, cited by 52%, up from 50% a year ago," Reynders says, citing McKinsey data. Attention will now turn to how quickly any renewed pressure on energy and input costs feeds through to prices and behavior, he says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
March 25, 2026 04:21 ET (08:21 GMT)
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