Rising oil and gas prices may hit increase of £300 a year for typical working-age households, says leading thinktank

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Conflict in the Middle East could trigger an energy price shock that wipes out anticipated growth in living standards in the UK worth £300 for a typical working-age household over the coming year, a leading thinktank has warned.

The Resolution Foundation said a “decent” one-off increase in average living standards this year and a bumper rise for lower-income households could be reversed by rising oil and gas prices as the Iran conflict disrupts supplies.