UK inflation surges amid war

The Office for National Statistics reported that the annual rate of Consumer Prices Index inflation rose to 3.3% in March, up from 3% the previous month.

This acceleration was primarily driven by the largest increase in fuel prices in over three years, a direct consequence of the energy shock triggered by the Iran war.

Chancellor Rachel Reeves acknowledged the pressure on families, noting that while the conflict is not Britain's war, its economic tremors are being felt at the pump.

Market analysts suggest this data significantly reduces the likelihood of a Bank of England interest rate cut in the near term.