UK inflation rises as Middle East conflict pushes up fuel prices
The rate of Consumer Prices Index inflation rose to 3.3% in March from 3% in February, the Office for National Statistics said.
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Higher fuel prices have driven an increase in UK inflation last month, according to analysts.
CPI inflation rising to 3.3% pushes inflation to its highest level since December.
Responding to the rise in inflation Chancellor of the Exchequer Rachel Reeves said: “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.
“Our economic plan is the right one and has put us in a stronger position to support families in the face of this new crisis.”
Read more: Petrol pump thefts hit record levels as Iran war sees forecourt fuel prices surge
The Bank of England and most economists have indicated that price increases are set to accelerate in the coming months as the impact of the Middle East conflict feeds into the cost of products and services.
Last month, the Bank of England indicated that inflation is likely to rise to as high as 3.5% by the third quarter.
Earlier this month, the International Monetary Fund (IMF) suggested spiking energy prices could help push UK inflation towards 4%, double the Bank of England’s 2% inflation target.
At the start of the year, the central bank had predicted that inflation would dip below the 2% target in April.
However, the conflict between US-Israeli and Iranian forces since late February has led to a sharp increase in oil and gas prices, while disruption to the Strait of Hormuz shipping corridor could hit other areas.