On March 9, a driver fills up a vehicle with diesel at a gas station in eastern London. Paul Ellis/AFP/Getty Images
In March, UK inflation increased for the first time since December, driven by soaring fuel prices due to higher global oil costs.
The Office for National Statistics reported today that consumer prices increased by 3.3% last month compared to the same time last year, rising from 3% in February.
According to the ONS, fuel prices experienced their biggest rise in over three years, climbing by 4.9%, in contrast to a decrease in February. Food costs and airline tickets increased at a quicker pace. Costs for producers, encompassing energy and raw materials, significantly increased, primarily due to rising oil prices.
Core inflation, excluding fluctuating food and energy prices, stayed largely the same.
Economists cautioned that inflationary pressures might expand. “This is merely the initial wave of the energy crisis, mainly evident in increased fuel prices at the pump,” stated PwC UK economist Adam Deasy. “We have not yet observed the ripple effect of price pressures in… products derived from oil and gas, including fertilizer, helium, plastics, or metals,” he noted in a memo.
At the same time, UK fuel retailers report that rising gasoline prices are resulting in a rise in fuel theft. “The rise in fuel prices has been paralleled by an increase in drivers leaving without paying or asserting they lack the ability to pay,” Gordon Balmer, executive director of the Petrol Retailers Association, stated today.
Data from Forecourt Eye, which assists fuel retailers in recovering payments owed, indicated that some incidents involved first-time offenders, highlighting “broader financial strain” on households, the PRA reported.
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