UK Inflation Rate Edges Up in March

2026-04-22 06:03 By Joana Taborda 1 min. read

The annual inflation rate in the UK rose to 3.3% in March 2026, up from 3% in each of the previous two months and in line with expectations.

This marks the highest reading in three months.

The increase was driven in part by transport costs, which rose by 4.7%, the fastest pace since December 2022.

Motor fuels, in particular, climbed by 4.9%, making the largest upward contribution, largely due to the impact of the war with Iran.

The average price of petrol increased by 8.6 pence per litre between February and March 2026 and diesel prices also rose sharply, up by 17.6 pence per litre.

Housing and household services costs rose 4.3% (vs 4.2%), driven by a 95.3% surge in domestic heating oil prices, the highest increase since September 2022.

Prices also accelerated for food and non-alcoholic beverages (3.7% vs. 3.3%) and services (4.5% vs. 4.3%).

On the other hand, clothing prices fell by 0.8%, the steepest decline since March 2021.

Compared to February, the CPI increased 0.7%.



News Stream
UK Inflation Rate Edges Up in March
The annual inflation rate in the UK rose to 3.3% in March 2026, up from 3% in each of the previous two months and in line with expectations. This marks the highest reading in three months. The increase was driven in part by transport costs, which rose by 4.7%, the fastest pace since December 2022. Motor fuels, in particular, climbed by 4.9%, making the largest upward contribution, largely due to the impact of the war with Iran. The average price of petrol increased by 8.6 pence per litre between February and March 2026 and diesel prices also rose sharply, up by 17.6 pence per litre. Housing and household services costs rose 4.3% (vs 4.2%), driven by a 95.3% surge in domestic heating oil prices, the highest increase since September 2022. Prices also accelerated for food and non-alcoholic beverages (3.7% vs. 3.3%) and services (4.5% vs. 4.3%). On the other hand, clothing prices fell by 0.8%, the steepest decline since March 2021. Compared to February, the CPI increased 0.7%.
2026-04-22
UK Inflation Rate Steady at 3%
The annual inflation rate in the UK steadied at 3% in February 2026, the same as in January and in line with expectations. Clothing made the largest upward contribution, with prices rising 0.9%, the first increase in four months. Prices normally rise in February as the spring product ranges start to enter the shops. Prices also rose at a faster pace for housing and utilities (4.6% vs 4.5%). On the other hand, inflation slowed for transport (2.4% vs 2.7%), with the average price of petrol falling by 1.6 pence per litre between January and February 2026, compared with a rise of 2.0 pence per litre last year. A slowdown was also seen for food (3.3% vs 3.6%), recreation and culture (2.5% vs 2.6%), and restaurants and hotels (4% vs 4.1%). Services inflation also edged down to 4.3% from 4.4%. Compared to the previous month, the CPI rose 0.4%, recovering from a 0.5% fall in January and matching forecasts. Annual core inflation unexpectedly edged up to 3.2% from 3.1%.
2026-03-25
UK Inflation Falls to 3.0% in January
UK consumer price inflation eased to 3.0% in January 2026, down from 3.4% in December and in line with market expectations. This marks the lowest annual inflation rate since March 2025, primarily driven by softer increases in transport and food prices. Transport costs rose by 2.7% year-on-year, slowing from 4.0% in December, as fuel prices fell and air fare inflation moderated. Meanwhile, food and non-alcoholic beverage prices increased by 3.6%, down from 4.5% the previous month. Inflation also eased in housing and utilities (4.5% vs. 4.9%) and recreation and culture (2.6% vs. 2.7%). However, price growth in restaurants and hotels accelerated to 4.1%, up from 3.8%. Core inflation, which excludes more volatile components such as food and energy, declined to 3.1% in January, its lowest level since August 2021, suggesting underlying price pressures are gradually moderating. On a monthly basis, consumer prices fell by 0.5%, reversing a 0.4% increase recorded in December.
2026-02-18