UK inflation rises in March as prices at the pump spike higher after Iran war

Inflation in the U.K. climbed in March after a sharp jump in prices at the pump in the wake of the disruption to energy supplies caused by the Iran war.

The Office for National Statistics said Wednesday that the annual consumer price inflation rate increased to 3.3% from 3% the previous month.

The rise was in line with market expectations.

Analysts said the increase has put paid to any expectations that the Bank of England would cut borrowing costs.

Prior to the start of the Iran war on Feb. 28, there had been a widespread expectation in financial markets that the bank would cut interest rates given that inflation was predicted to fall back towards its 2% target during the spring.