UK Inflation Climbs to 3.3% in March as Iran War Lifts Fuel Prices 4.9%
Updated
Updated · Cambridge Network · Jun 10
UK Inflation Climbs to 3.3% in March as Iran War Lifts Fuel Prices 4.9%
3 articles · Updated · Cambridge Network · Jun 10
Summary
UK annual inflation rose to 3.3% in March from 3.0%, the first clear sign that the oil-price shock tied to the Iran war is feeding into consumer prices.
Motor fuel prices increased 4.9% in the year to March after a 4.6% fall in the year to February, marking the strongest fuel inflation since January 2023.
That rise undercut Bank of England hopes that inflation would drift back toward its 2% target from April, helped by a lower domestic energy price cap.
Rachel Reeves's 2025 budget move had been expected to cut average annual utility bills by £150 and ease inflation and borrowing costs, but higher oil prices now threaten more pressure because March pump prices averaged 140.2p for unleaded and 158.7p for diesel.
Forecasters still do not expect a return to the 10% plus inflation seen in 2022-23, but the March data show the UK's inflation problem has not disappeared.