Inflation in the UK rose to 3.3% in March, driven primarily by soaring fuel prices due to the conflict in the Middle East. The Office for National Statistics reported that petrol prices increased by 8.6p per litre, reaching 140.2p per litre. Thomas Pugh, chief economist at RSM UK, commented: “The jump in inflation was almost entirely driven by rocketing fuel prices.” The Bank of England’s monetary policy committee is expected to hold interest rates steady or even increase them considering the threat of higher prices. Adam Deasy, an economist at PwC, said: “This is just the first wave of the energy shock, primarily showing up in higher prices at the pump. We are yet to see the knock-on impact of price pressures in downstream or byproducts to oil and gas, such as fertiliser, helium, plastics or metals.”
