UK Inflation Rises to 3.3% in March as Iran War Drives Fuel Prices Higher

Gate News message, April 22 — UK inflation jumped to 3.3% in March, up from 3% in February, marking the highest level since December 2025. The increase was driven primarily by a sharp rise in diesel and petrol prices caused by the conflict in the Middle East, according to the Office for National Statistics.

Motor fuel prices surged by 8.7% month-on-month, the largest increase since June 2022 following Russia's invasion of Ukraine. Petrol prices rose by 8.6 pence per litre to 140.2 pence per litre, the highest since August 2024. Diesel prices increased by 17.6 pence per litre to 158.7 pence per litre, the highest since November 2023.

Air fares also contributed to inflation, rising 14.5% year-on-year, while food and non-alcoholic drink prices climbed 3.7% year-on-year. Clothing and footwear prices, however, declined 0.8% month-on-month, providing downward pressure on the overall rate. Chancellor Rachel Reeves stated: "The Iran crisis is not our war, but it is pushing up bills for families and businesses. We're acting to protect people from unfair price rises, bring down food prices at the till, and boost long-term energy security."

The 3.3% inflation rate moves the UK further from the 2% target set by the Government and Bank of England. Economists remain cautious about the outlook, with uncertainty surrounding energy supply and prices.