"The anticipated increase reflects renewed pressure on household budgets driven by surging oil and fuel costs, which economists say are increasingly being shaped by the fallout from the conflict involving US-Israeli and Iranian forces."
"The latest inflation reading will be the first ONS release to fully reflect higher petrol and diesel prices since the outbreak of conflict. Data from the RAC showed petrol prices averaged 158.1p per litre in mid-April, around 25p higher than at the start of the conflict."
"Economists at Oxford Economics estimate that the surge in fuel costs alone could add between 0.2 and 0.3 percentage points to March inflation, underscoring the sensitivity of UK prices to global energy shocks."
UK inflation is projected to increase significantly, driven by rising fuel prices amid Middle East tensions. The Consumer Prices Index is expected to reach 3.3% in March, the highest since December. The Bank of England anticipates further inflation acceleration, potentially hitting 3.5% by the third quarter. The International Monetary Fund warns that energy price shocks could push inflation towards 4%, complicating monetary policy. The latest figures will reflect the impact of increased petrol and diesel prices since the conflict began, with economists estimating a notable contribution to inflation from fuel costs.
Read at London Business News | Londonlovesbusiness.com
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