"The consumer prices index (CPI) remained at 3%, in line with economists' expectations but still well above the government's 2% target, indicating persistent inflationary pressures."
"The outlook for inflation has shifted dramatically since the onset of the Middle East conflict, which has led to soaring oil and gas prices after the effective closure of the strait of Hormuz."
"Bank of England policymakers had expected CPI to fall to the 2% target in the first quarter of the year, but recent developments have altered that expectation."
"Chancellor Rachel Reeves is reviewing options for providing targeted support to households that could face significantly higher utility bills in the coming months due to the ongoing conflict."
The UK inflation rate held steady at 3% in February, above the government's 2% target. The ongoing conflict in the Middle East has caused a surge in oil and gas prices, impacting the inflation outlook. Bank of England policymakers anticipated a drop to 2% in early 2023, but recent events have led to expectations of rising interest rates instead. The chancellor is considering targeted support for households facing higher utility bills due to the conflict, which has now lasted four weeks.
Read at www.theguardian.com
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