UK inflation rises after Iran war pushes up fuel prices

uk inflation hit 3.3% in the year to march, up from 3% in february. the office for national statistics said the jump was "largely due to increased fuel prices" after the us-israel war with iran started on 28 february. motor fuel rose 8.7% month-on-month — the biggest increase since june 2022. over the year to march, fuel prices rose 4.9%, the highest since january 2023. airfares and food also contributed. food inflation ticked up from 3.3% to 3.7%, driven by chocolate, meat, fish and soft drinks. the food and drink federation forecasts food inflation could hit 10% by year-end. ons chief economist grant fitzner said the only offset came from clothing, where prices rose less than last year. wholesale energy prices have soared as production and transport across the middle east slowed or stopped due to missile strikes and drone attacks. the bank of england's monetary policy committee meets next week to decide on rates, currently at 3.75%. before the war, rates were expected to fall. now speculation points to a hold or even a hike. chancellor rachel reeves said "this is not our war, but it is pushing up bills for families and businesses." economists predict inflation could peak around 3.5% to 4% this year.