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Inflation rises to 3.3% as Iran war drives fuel price hikes
The Bank of England in the City of London

INFLATION has risen to 3.3 per cent as the Iran war pushes up fuel prices, with unions warning: “This looks like just the beginning.”

Official figures today showed the CPI measure of inflation in March at its highest since December, rising from 3 per cent in the previous month.

Unite general secretary Sharon Graham said: “Today’s uptick in inflation looks like it is just the beginning.

“Before the war in Iran, workers were already forecast to get poorer. The outlook is now looking increasingly bleak.

“Workers must not pay the price yet again, for a crisis not of their making. As a minimum the government must take decisive action on soaring energy bills.”

Higher motor fuel was the main driver of the acceleration in inflation, increasing by 8.7 per cent month-on-month, the Office for National Statistics found.

The data revealed that the cost of air travel also increased significantly while food and non-alcoholic drink prices were up 3.7 per cent year-on-year in March, accelerating from 3.3 per cent inflation in the previous month.

The rise in the overall rate of inflation drives Britain further away from the 2 per cent inflation target set by the government and the Bank of England.

Chancellor Rachel Reeves said that the Iran conflict was “not our war, but it is pushing up bills for families and businesses” as a result.

TUC general secretary Paul Nowak said: “Households are feeling the pain from Trump’s illegal war.

“Big rises in petrol prices are pushing up inflation and shockwaves from the war are putting recent improvements in growth under threat.

“But the bank must remain focused on cutting rates as soon as possible. Coupled with Trumpflation, higher interest rates would increase the pressure on already stretched families and businesses.

“But lowering rates would provide vital support for economic growth, which is an important part of the bank’s remit too.”

He urged ministers to “go further to shield households and businesses” and introduce a targeted emergency package in key foundation industries “in sectors including chemicals, glass and ceramics to protect jobs.”  

National Education Union general secretary Daniel Kebede warned high inflation will have a “serious impact on hard-pressed families in our school communities, who are dealing with stretched food budgets and rising petrol costs.”

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