The UK inflation rate stayed at 3% in the year to February as lower fuel prices were offset by a rise in the price of clothing.
However, these official figures were gathered before the US-Israel war with Iran began – when data suggests the price of petrol was at its lowest since June 2021.
Pump prices for petrol and diesel have since soared following a surge in wholesale oil prices following the outbreak of the conflict.
This is expected to have a knock-on effect for energy prices and other things such as leisure and food costs as manufacturers and firms pass on costs, meaning that predicted falls in inflation this year are now not likely to happen.
The Office for National Statistics’ (ONS) inflation figure for February, which measures the rate of price increases over a year, remained the same as it was in January after months of steady falls.
Although the inflation rate has dropped from a high of 11.1% in October 2022, prices themselves are not coming down, but simply rising at a slower pace.
