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UK economy flatlined in month before Iran war hit global energy prices
The UK economy stalled with zero GDP growth in January due to weak domestic sectors before the Middle East war drove oil prices up by over 50%, raising inflation concerns.
- On Friday, the Office for National Statistics reported the UK economy recorded zero growth in January, falling short of the 0.2% expansion economists had expected.
- The economy had already slowed to just 0.1% growth in the final three months of 2025, carrying weak momentum into January despite earlier hopes for a stronger start to the year.
- Services stagnated with zero growth while manufacturing rose 0.1% and construction expanded 0.2%, prompting Deutsche Bank's Chief UK Economist Sanjay Raja to say the report "was not what the doctor ordered."
- Markets have shifted dramatically, now pricing roughly 86% odds of a Bank of England rate hike by year-end, with only 1.83% probability of a cut at the March 19 meeting according to LSEG data.
- Energy prices have surged this month—Brent crude up more than 50% and UK wholesale gas up 70%—leading economists to warn that stagflation looks likely if prices persist, with growth potentially slipping to around 0.5% this year.
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45 Articles
45 Articles
UK economy stalls ahead of Iran war energy shock, raising growth concerns
The UK economy stagnated in January with GDP showing no growth, official data revealed, raising concerns about Britain’s vulnerability to rising energy prices triggered by the Iran conflict and Brent crude surging above $100 a barrel
·Mumbai, India
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Financial PostReposted by 
Business Times
Business TimesBritain's Economy Unexpectedly Stalled at Start of the Year
(Bloomberg) — The UK economy unexpectedly failed to grow in January, suggesting activity was stalling even before conflict in the Middle East threatened to deliver a fresh blow to consumers and businesses.
·Canada
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Coverage Details
Total News Sources45
Leaning Left5Leaning Right5Center11Last UpdatedBias Distribution52% Center
Bias Distribution
- 52% of the sources are Center
52% Center
L 24%
C 52%
R 24%
Factuality
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