- UK Consumer Prices Index inflation rose to 3.3 per cent in March, up from 3 per cent in February, according to the latest figures from the Office for National Statistics.
- The increase is largely attributed to the economic impact of the Iran crisis, specifically elevated petrol and diesel costs following the closure of the Strait of Hormuz shipping corridor.
- Chancellor Rachel Reeves acknowledged the crisis is "pushing up bills for families and businesses" and reaffirmed her commitment to keeping costs down.
- The Resolution Foundation estimates that the average household will be £480 worse off this year due to increased energy costs, with a severe escalation potentially adding £16 billion to government borrowing by 2029-30.
- The rise in inflation makes it unlikely that the Bank of England will cut interest rates soon, impacting potential cheaper mortgages and business borrowing costs.
IN FULL
