UK Inflation Hits 3.3% as Iran War Sends Petrol Costs Soaring
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l]{c2zrt)bfeb5p6ow0nm642_media_dl_1.png Office for National Statistics,Article content(Bloomberg) — UK inflation accelerated in March, as a surge in energy costs triggered by the Iran war started to hit consumers in the pocket.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe consumer prices index rose 3.3% from a year earlier, up from 3% the previous month, the Office for National Statistics said Wednesday. The figure was in line with the expectation of economists.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe pickup was driven by an 8.7% jump in the price of motor fuel, the largest monthly gain since 2022 when Russia invaded Ukraine. Services inflation, a key indicator of underlying price pressures, unexpectedly picked up to 4.5% from 4.3%. Article contentArticle contentThe report shows how the Middle East crisis has upended the outlook for inflation, with Brent crude close to $100 a barrel as the US and Iran fail to reach an agreement to end a 53-day war that has brought Persian Gulf oil and gas exports to a near standstill.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe squeeze is also threatening to ripple out beyond the petrol pump into other everyday goods and services, with domestic gas and electricity prices set to rise in July and warnings that food inflation could reach close to double digits.Article contentInflation had been on track to fall to the 2% target in the second quarter, clearing the way for further interest-rate cuts from the Bank of England. Now, however, it’s expected to stay at around 3% and accelerate in the third quarter, raising the possibility of rate increases instead. Article contentWhile policymakers are expected to keep borrowing costs on hold on April 30 as they seek more clarity on the conflict, they’ve signaled they are ready to act if needed to stop the energy price shock from spilling over into second-round effects.Article contentArticle content—With assistance from Mark Evans, Harumi Ichikura, Joel Rinneby and Rose Henderson.Article contentTrending Canadian telecom Rogers goes into tailspin as price war heats up Telecom Solomon says U.S. recession risk could be 'one tweet away' PMN Business Posthaste: Canada's home prices have now been falling for four years — and haven't hit bottom yet News Toronto's condo market 'hits bottom' with some developers looking at selling units below cost Real Estate Canadian satellite startup NorthStar on track to hit US$300-million valuation after SPAC merger Innovation Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Canadian telecom Rogers goes into tailspin as price war heats up Telecom Solomon says U.S. recession risk could be 'one tweet away' PMN Business Posthaste: Canada's home prices have now been falling for four years — and haven't hit bottom yet News Toronto's condo market 'hits bottom' with some developers looking at selling units below cost Real Estate Canadian satellite startup NorthStar on track to hit US$300-million valuation after SPAC merger Innovation