UK economic growth slowed in the second quarter as disruption from the Iran war and persistently high energy prices began to weigh on the economy. The figures matter because they add pressure on the new chancellor, John Healey, to consider further household support ahead of winter and could complicate the Bank of England’s inflation response.

Gross domestic product grew by 0.4% in the three months to June, down from 0.6% in the first quarter and in line with economists’ expectations. July inflation data, due next week, is expected to rise above June’s 2.6% as utility bills increase; sustained inflation could prompt the Bank of England to raise interest rates.