Rising fuel prices push inflation to 3.3%

Rising fuel prices as a consequence of war in Iran pushed inflation to 3.3% in March, according to the latest Consumer Price Index published by the Office of National Statistics (ONS).

According to the ONS, the average price of petrol rose by 8.6 pence per litre between February and March 2026 to 140.9 pence per litre; diesel prices rose by 17.6 pence per litre in the same period to 158.7 pence per litres. Figures contrast with the same period last year when prices for both petrol and diesel fell slightly, and are below current prices being seen at the pump in Stockport as prices have continued to rise through April.

Elsewhere in the transport sector, air fares and vehicle maintenance costs also rose due to the rise in fuel prices.

Food prices, meanwhile, also rose by 3.7% over the 12 months to March 2026, but with significant variance between categories, with prices of chocolate, meat and fish among the fastest rising compared to last year.

Despite ongoing uncertainty over fuel supplies as conflict continues in Iran, restricting global trade of oil and gas through the Strait of Hormuz, forecasts for the UK economy maintain that inflation will not rise to the double-digit levels seen during 2022 and 2023. Current predictions anticipate that inflation will cap out at around 4% this year.

Although starting at a higher base last month, inflation has not rise as fast March compared to other neighbouring economies, up just 0.3 percentage points on February’s data. France saw a 0.9 percentage point increase to 2.0% inflation in March, while in Germany, inflation rose from 2.0% to 2.8%.

With inflation set to continue to rise into 2026 to double the Bank of England’s 2% target rate, its Monetary Policy Committee is becoming more likely to back a rise in interest rates to help curb the rate of price rises when it next meets on Thursday 30th April.