LONDON — British inflation accelerated in March as fuel costs surged following energy supply disruptions linked to the Iran conflict, according to government data released Wednesday.
The Office for National Statistics reported that annual consumer price inflation jumped to 3.3%, up from the previous month’s 3% rate. This increase matched what financial experts had predicted.
Economic analysts noted that this uptick has eliminated any possibility that the Bank of England might reduce interest rates in the near term. Before the conflict began on February 28, financial markets had anticipated the central bank might lower its benchmark rate from the current 3.75%, as inflation was expected to move closer to the target of 2% during spring months.
The primary driver of the inflation surge was motor fuel costs, which shot up 8.7% in a single month — marking the steepest rise since June 2022, which occurred shortly after Russia’s invasion of Ukraine. Aviation fares and grocery prices, both tied to the energy cost increases, also contributed to the overall price growth.
