UK inflation jumped to 3.3% in March 2026, driven primarily by a sharp surge in fuel prices linked to the Iran conflict.
UK inflation accelerated to 3.3% in March 2026, up from 3% in February 2026, marking the first clear evidence of the Iran‑U.S. conflict feeding through to consumer prices.
Fuel costs
Official ONS data shows that motor fuel costs were the dominant driver, with petrol and diesel prices rising at their fastest pace in more than three years as global energy markets reacted to the disruption in the Strait of Hormuz.
Air fares
Air fares also rose sharply, partly due to the early Easter holidays, while food inflation picked up again, including notable increases in sweets and chocolate.
Clothing discounted
Clothing provided the only meaningful offset, with retailers discounting more heavily than last year.
The rise pushes inflation further from the Bank of England’s 2% target and complicates the policy outlook.
While economists expect UK inflation to ease slightly in April 2026, the broader risk is that sustained energy pressures could keep price growth elevated for longer.