Britain’s annual inflation rate rose to 3.3 percent in March, driven largely by higher fuel costs linked to the ongoing Middle East conflict, according to official data.
The Consumer Prices Index increased from 3.0 percent recorded in the 12 months to February, the Office for National Statistics said.
“Inflation climbed in March, largely due to increased fuel prices, which saw their largest increase for over three years,” said Grant Fitzner.
UK Finance Minister Rachel Reeves reiterated the government’s stance against the conflict, noting its impact on living costs.
“This is not our war, but it is pushing up bills for families and businesses. That’s why it’s my number one priority to keep costs down,” Reeves said.
She recently announced plans to raise the government’s windfall tax on low-carbon electricity generators to 55 percent from 45 percent in a bid to support households and businesses, while resisting calls for direct energy price reductions.
At 3.3 percent, the UK’s inflation rate now matches that of the United States for March, although the US saw a sharper increase from 2.4 percent in February.
The figure is also higher than the eurozone, where annual inflation climbed to 2.6 percent from 1.9 percent in the same period.
Energy prices surged following the outbreak of the US-Iran war on February 28, though they have eased slightly after a ceasefire extension announced by Donald Trump.
However, oil and gas costs remain elevated due to continued disruption to Gulf supplies passing through the Strait of Hormuz.
Analysts say the Bank of England is unlikely to raise interest rates in response to the latest inflation figures, given expectations of weaker economic growth.
“While the increase in prices will be felt keenly at the petrol pump, it is highly unlikely a single inflation print will be enough to sway policy makers into moving the Bank of England base rate,” said Emma Wall of Hargreaves Lansdown.
Meanwhile, the International Monetary Fund has downgraded its growth forecast for the UK economy to 0.8 percent for the year, down from its earlier projection of 1.3 percent, citing the economic impact of the conflict.
