UK consumer prices rose faster than expected in March, with the Consumer Prices Index (CPI) climbing to 3.3% in the 12 months to March 2026, up from 3.0% in February, according to data released by the Office for National Statistics.
The broader CPIH measure, which includes owner-occupiers’ housing costs, increased to 3.4% from 3.2%. On a monthly basis, CPI rose 0.7% in March, compared with 0.3% a year earlier.
The pickup reverses recent progress toward the Bank of England’s 2% target and comes as economists and policymakers grapple with the inflationary fallout from rising global energy costs linked to conflict in the Middle East.
The largest upward contribution to the annual rate came from the transport sector, where prices rose 4.7% in the year to March, up sharply from 2.4% in February – the highest rate since December 2022.
Motor fuels were the standout factor as average petrol prices increased by 8.6 pence per litre to 140.2 pence, the highest since August 2024, while diesel rose by 17.6 pence per litre to 158.7 pence. Overall motor fuel prices jumped 4.9% on the year, swinging from a 4.6% fall in February.
Air fares also contributed, rising 10% in March compared with a small decline a year earlier, driven by long-haul routes around the Easter period.
Domestic heating oil prices surged dramatically, recording a 95.3% annual increase, the highest since September 2022.
These movements align with broader global energy price pressures that intensified in recent weeks, pushing UK inflation higher than many forecasters had anticipated just weeks earlier.
Partially offsetting the rise was a sharp slowdown in clothing and footwear prices, which fell 0.8% in the year to March, the lowest rate since March 2021. Downward effects were particularly notable in women’s and children’s clothing.
Food and non-alcoholic beverages inflation edged up modestly to 3.7% from 3.3%, while housing and household services remained elevated at 4.3%.
Core inflation, which strips out volatile food, energy, alcohol, and tobacco, eased slightly. Core CPI fell to 3.1% from 3.2%, and core CPIH to 3.3% from 3.4%. Services inflation ticked up marginally to 4.3%.
Goods inflation accelerated from 1.6% to 2.1%, while services remained sticky.
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