UK inflation uptick
- UK consumer inflation rose to 3.3% in March, up from 3.0% in February. - The increase was driven chiefly by higher fuel, food and airfares, showing early spillover from the Iran war. - Economists say the hotter print may not force fresh Bank of England hikes immediately, but it complicates the policy outlook (reuters.com).
Britain’s inflation rate rose to 3.3% in March, the highest since December, after fuel, food and air fares all got more expensive. (ons.gov.uk) The Office for National Statistics said consumer price inflation was 3.0% in February, so March marked a 0.3 percentage-point increase in a month. The data was published on April 22, 2026. (ons.gov.uk) Grant Fitzner, the Office for National Statistics’ chief economist, said motor fuels “saw their largest increase for over three years,” while food prices rose after falling a year earlier and air fares climbed by more than usual for March. (bbc.co.uk) Reuters reported the March figures showed the first clear spillover into British consumer prices from the Iran war, which pushed oil prices higher after the conflict began on February 28. Britain’s regulated household energy bills have not yet fully reflected that shock, because the next cap change is due in July. (money.usnews.com) That leaves the Bank of England with inflation still well above its 2% target days before its next policy decision. The Bank said in its March minutes that members voted unanimously to keep Bank Rate at 3.75%, and the next minutes are due on April 30. (bankofengland.co.uk) In March, the Bank of England also said higher energy prices since its February forecast had “significantly” increased the risk around its inflation outlook. It projected inflation would rise toward 3.5% in the third quarter of 2026 before easing later. (bankofengland.co.uk) Economists told Reuters the hotter reading did not automatically point to another rate increase, and a separate Reuters poll published on April 21 found most expected the Bank to hold rates through 2026. Markets were also still leaning toward no change at the April 30 meeting. (msn.com, global.morningstar.com) The March release is the last inflation report before that meeting, so it sharpens the question facing policymakers: whether a fuel-driven price shock fades on its own or starts feeding into broader prices and pay. For households, it means the run of slower inflation at the start of 2026 has already been interrupted. (ons.gov.uk, money.usnews.com)
