UK inflation soars as impact of Iran war kicks in affecting prices for Brits

UK inflation soars as impact of Iran war kicks in affecting prices for BritsInflation measures the rate at which the price of goods and services have risen over time - with the latest data being released todayCommentsMoneyLevi Winchester Money Editor07:01, 22 Apr 2026Updated 07:33, 22 Apr 2026View 2 ImagesDrivers have been hit with higher petrol and diesel costs(Image: Getty Images)UK inflation rose last month after the Iran war pushed up petrol and diesel prices for millions of drivers.‌Consumer Prices Index (CPI) inflation reached 3.3% in March, according to new data from the Office for National Statistics (ONS) - up from 3% in February.‌It marks the first time inflation figures have included higher costs from the Middle East conflict.‌The war has led to a sharp increase in oil prices, following disruption to the Strait of Hormuz, which has subsequently sent petrol and diesel costs soaring in recent weeks.RAC data from Tuesday shows the average price of petrol at UK forecourts was 157.57p per litre, while diesel was 190.13p per litre.Content cannot be displayed without consent‌Both have fallen slightly from peaks of 158.31p for petrol and 191.54p for diesel, but are still much higher than before the war started on February 28, when the average cost was 132.83p and 142.3p, respectively.Grant Fitzner, chief economist at the ONS, said inflation was also higher in March due to increased airfares, which have been impacted by rising jet fuel costs, as well as food prices.The figure was largely in line with economists' expectations and means inflation is now at its highest rate since December last year.‌Last month, the Bank of England said inflation is likely to rise to as high as 3.5% by the third quarter of this year.The Bank has a target of 2% inflation. It comes as energy prices are expected to rise this summer, following a rise in wholesale gas prices.The Ofgem price cap is currently set at £1,641 per year for the typical household. Analysts at Cornwall Insight...