UK inflation hits 3.3% in March on energy, food

The Office for National Statistics reported UK annual consumer price inflation rose to 3.3% in March 2026, up from 3.0% in the previous two months. On a monthly basis, the consumer price index increased 0.7%.

Transport costs were the fastest-growing category, rising 4.7% year on year, led by a 4.9% increase in motor fuels. The ONS said that equated to gasoline rising about 8.6 pence per liter at the pump and diesel up roughly 17.6 pence per liter.

Food and nonalcoholic beverage inflation accelerated to 3.7% from 3.3% the prior month. Services inflation remained at 4.5%. Housing and household services rose to 4.3% from 4.2%, supported by a 95.3% increase in domestic heating oil prices. Clothing prices fell 0.8%.

The ONS noted shifts in energy prices tied to volatility in global oil markets. Analysts cited supply disruptions and geopolitical tensions in the Middle East as factors affecting energy costs.

Market analyst Zain Vawda of OANDA wrote that the figures “likely confirm that a restrictive policy stance remains necessary.”

Bank of England officials will review the data as they assess interest rates and will monitor whether higher energy prices pass through to wages and service-sector costs.

Markets showed little immediate reaction, with sterling largely unchanged against the dollar after the release. Forecasters said some effects of the Middle East conflict on food and services may show up in data in the months ahead.