UK inflation figures showing impact of Iran war on prices to be released shortly

Fuel prices see biggest rise in more than three years - ONS chief economist published at 07:05 BST Rachel Clun Business reporter The rise in the UK inflation rate was driven largely by higher fuel prices, according to Office for National Statistics chief economist Grant Fitzner. Fuel prices "saw their largest increase for over three years", he says. "Airfares were another upward driver this month, alongside rising food prices." Inflation rate rises to 3.3% published at 07:01 BST Breaking The UK rate of inflation has risen to 3.3% in the year to March, the Office for National Statistics says. That's up from 3% in the 12 months to February. A look at what is happening with inflation in the UK published at 06:45 BST Jennifer Meierhans Business reporter The UK inflation rate was 3% in February. If it rises to 3.3% as experts are forecasting, that would be its highest level since December. Although that's moving further above the Bank of England's 2% target, it's still well below the 11.1% high reached in October 2022 after Russia's full-scale invasion of Ukraine - the highest rate for 40 years. At the start of the year, the Bank of England predicted inflation would dip below its 2% target in April. However, the US-Israel war with Iran has led to a sharp rise in oil and gas prices, while disruption to the Strait of Hormuz shipping corridor could also affect other areas. Last month, the Bank of England indicated inflation is likely to rise to as high as 3.5% between July and September. At a meeting of the International Monetary Fund in Washington last week, the Bank's governor told the BBC the world was facing a "very big energy shock" that will push up prices . What is inflation? published at 06:36 BST Figures that give us an idea of how well the UK economy is doing are closely watched by analysts and households, as the impact of the war in Iran continues to be felt. Inflation is one of these measures. It's basically the increase in the price of something over time. For example, if a bottle of milk costs £1 but - a year later - costs £1.05, then annual milk inflation rate is 5%. The Office for National Statistics collects the costs of 760 products and services across different retailers and tracks price changes over the previous 12 months to calculate inflation. The main inflation measure is called the Consumer Prices Index (CPI), and that figure is published monthly. Benefits, pensions and interest rate decisions by the Bank of England are all affected by inflation. The Bank has a target of 2% for the CPI. Fuel price rises expected to push up inflation published at 06:28 BST Dharshini David Deputy economics editor The price of filling up at the pump is one of the most visible and immediate impacts of higher global energy costs, not just on our own budgets but the official figures too. Petrol and diesel prices climbed steadily during March. And while the inflation data was collected around the middle of that month, the rise by then - it is thought - could have been enough to add about 0.3% to inflation and derail a hoped-for drop. There is likely to be more price pressures in the pipeline from the rise in oil and gas prices. The impact on transport costs as well as fertiliser and other commodities could take several months to pass through supply chains to affect prices of items like food. Home energy bills could also rise in the months to come. But the potential rise in inflation is likely to be far more modest than that seen at the start of the war in Ukraine. The easing of oil prices in recent weeks has fuelled hopes that it will peak at between 3.5% and 4% this year - and that may mean the chances of an interest rate rise this year are retreating. Inflation figures due soon, showing impact of Iran war on UK cost of living published at 06:08 BST Jennifer Meierhans Business reporter Image source, EPA/Shutterstock The latest UK inflation figures, showing how quickly prices are rising, are due out later this morning at 07:00 BST . The data from the Office for National Statistics is for March - and will give us the first official look at how the US-Israel war with Iran has affected the cost of living in the UK. Inflation for February was 3%, and economists expect March's figure to rise to 3.3%, mainly because of higher petrol and diesel prices linked to the conflict. We'll bring you the headline figure here at 07:00 BST - along with analysis from our correspondents.