UK Inflation Rises To 3.3% In March
UK inflation rose to 3.3% in March, up from 3.0% in February, as higher fuel prices pushed up the cost of living. The increase was sharper than many expected and marked a fresh inflation setback, with transport costs playing a major role in the latest rise.
UK Inflation Rises To 3.3% In March
Official data showed the Consumer Prices Index increased 3.3% year-on-year in March, while monthly inflation came in at 0.7%. The broader CPIH measure, which includes owner occupiers’ housing costs, rose 3.4% annually. The latest reading has moved inflation further away from the Bank of England’s 2% target and is likely to intensify debate over the path of interest rates.
Fuel Prices Drive Sharp Rise In UK Consumer Prices
Motor fuels made the biggest upward contribution to the monthly increase. Petrol and diesel prices both rose noticeably between February and March, reflecting the impact of higher global energy costs. Along with fuel, airfares and some food prices also added pressure, making the inflation rise broader than just one category.
Bank Of England Faces Fresh Inflation Pressure
The higher inflation reading is likely to complicate the Bank of England’s policy outlook. Before the recent energy shock, inflation had been expected to move closer to target, but the latest figures have increased concern that price pressures may stay elevated for longer. Services inflation also remained high, showing that domestic price pressures have not fully eased.
