UK Inflation Jumps in March as Middle East War Propels Energy Prices

Britain’s annual inflation rate jumped to 3.3 percent in March as the Middle East war sent oil and gas prices surging, official data showed Wednesday. The Consumer Prices Index (CPI) increased from 3.0 percent in the 12 months to February, the Office for National Statistics said in a statement. “Inflation climbed in March, largely due to increased fuel prices, which saw their largest increase for over three years,” Grant Fitzner, chief economist at the ONS, said in a statement. Finance minister Rachel Reeves reiterated the Labour government’s opposition to a conflict that has increased the cost of living for millions of Britons. “This is not our war, but it is pushing up bills for families and businesses. That’s why it’s my number one priority to keep costs down,” Reeves said in a statement. At 3.3 percent, the latest UK inflation figure matches the March print for the United States. But the pace of the CPI increase in the world’s biggest economy was far sharper, having stood at 2.4 percent in February. Britain’s inflation rate is also much larger than in the eurozone, where annual inflation rose to 2.6 percent in March from 1.9 percent in February. The US-Iran war began on February 28, sending energy prices rocketing. They have since pulled back on a ceasefire that US President Donald Trump extended Tuesday. But oil and gas prices remain far above their pre-war levels as Gulf supplies remain largely blocked from transiting the Strait of Hormuz.