UK inflation accelerates after Iran war drives sharp rise in fuel prices
UK inflation lifted to its highest since December after a sharp jump in diesel and petrol prices caused by the conflict in the Middle East, according to official figures.
Chancellor Rachel Reeves said the Iran crisis was “not our war, but it is pushing up bills for families and businesses” as a result.
The rate of Consumer Prices Index (CPI) inflation increased to 3.3% in March from 3% in February, the Office for National Statistics said.
The increase was in line with predictions from economists.
Higher motor fuel was the main driver of the acceleration in inflation, increasing by 8.7% month-on-month – the largest increase since June 2022, shortly after the Russian invasion of Ukraine.
The ONS found that the average price of petrol rose by 8.6p per litre between February and March to 140.2p per litre. This marked the highest price since August 2024.
Diesel prices meanwhile increased by 17.6p per litre in March to an average of 158.7p per litre, the highest price since November 2023.
Office for National Statistics chief economist Grant Fitzner said: “Inflation climbed in March, largely due to increased fuel prices, which saw their largest increase for over three years.
“Air fares were another upward driver this month, alongside rising food prices.
“The only significant offset came from clothing costs, where prices rose by less than this time last year.”
Ms Reeves said: “We’re acting to protect people from unfair price rises if they occur to bring down food prices at the till, and are boosting long-term energy security — building a stronger, more secure economy.”
Published: by Radio NewsHub