UK inflation rises as Middle East war propels fuel prices

The Office for National Statistics has announced that the United Kingdom’s (UK) annual inflation rate jumped to 3.3 per cent in March 2026 as the Middle East war sent oil and gas prices surging.

The ONS, in a statement on Wednesday, April 22, said the Consumer Prices Index (CPI) increased from 3.0 per cent in the 12 months to February.

“Inflation climbed in March, largely due to increased fuel prices, which saw their largest increase for over three years,” the chief economist at the ONS, Grant Fitzner, said.

Finance minister Rachel Reeves reiterated the Labour government’s opposition to a conflict that has increased the cost of living for millions of Britons.

“This is not our war, but it is pushing up bills for families and businesses. That’s why it’s my number one priority to keep costs down,” Reeves said in a statement.

On Tuesday, she announced a plan to raise the government’s windfall tax on low-carbon electricity generators to 55 per cent from 45 per cent in a bid to support households and businesses.

However, she has resisted calls to directly lower energy costs for consumers.

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At 3.3 per cent, the latest UK inflation figure matches the March reading for the United States. But the pace of the CPI increase in the world’s biggest economy was far sharper, having stood at 2.4 per cent in February.

Britain’s inflation rate is also much larger than in the eurozone, where annual inflation rose to 2.6 per cent in March from 1.9 per cent in February.

Energy prices have skyrocketed since the Middle East war began on February 28, though they have since pulled back on a ceasefire that United States President Donald Trump extended on Tuesday.

However, oil and gas prices remain far above their pre-war levels as Gulf supplies remain largely blocked from transiting the Strait of Hormuz.