Stories

Wed, 25 Mar 2026

Wed, 25 Mar 2026 UK inflation rate stays at 3% before Iran war hits oil prices

The speed of price rises in the UK has stayed the same, according to data which was collected before the US-Israel war with Iran began.

* UK inflation rate remains at 3% in the year to February, but prices themselves are rising at a slower pace.
* Lower fuel prices were offset by a rise in clothing prices, with petrol averaging 131.6p per litre and diesel averaging 141.1p in February.
* Following the US-Israel war with Iran, wholesale oil prices have surged, causing pump prices for petrol and diesel to soar, with experts predicting further rises.
* The price of petrol has risen to 149.4p a litre and diesel to 175.7p per litre by Wednesday.
* Experts predict that the conflict will drive up inflation, making it unlikely that predicted falls in inflation this year will happen.
* The Bank of England may be forced to raise interest rates later in the year to combat higher inflation.
* Chancellor Rachel Reeves announced measures to bring down the cost of living, but experts say her efforts are likely to be thwarted by the war.
* Businesses are being hit hard by rising fuel prices, with some saying they are having to pay up to £1.86 per litre for fuel that was previously priced at £1.21 per litre.
* The UK's official competition watchdog is investigating reports of profiteering from heating oil providers.