22.04.202606:03:55UTC+00UK Inflation Rate Edges Up in March

The annual inflation rate in the UK rose to 3.3% in March 2026, up from 3.0% in each of the previous two months and in line with expectations. This is the highest rate in three months.

The increase was driven in part by transport costs, which grew by 4.7%, the fastest pace since December 2022. Motor fuels in particular rose by 4.9%, making the largest upward contribution, largely reflecting the impact of the war with Iran. The average price of petrol increased by 8.6 pence per litre between February and March 2026, while diesel prices jumped by 17.6 pence per litre.

Housing and household services costs climbed by 4.3% (up from 4.2%), boosted by a 95.3% surge in domestic heating oil prices, the sharpest rise since September 2022. Price growth also accelerated for food and non-alcoholic beverages (3.7% vs 3.3%) and for services (4.5% vs 4.3%).

By contrast, clothing prices fell by 0.8%, the steepest decline since March 2021. On a monthly basis, the consumer price index (CPI) increased by 0.7% compared with February.