The UK's overall inflation rate rose to 3.3% in March, driven by steep increases in petrol, diesel, and air fares, according to the Office for National Statistics (ONS). However, prices eased for clothing and some electrical goods.
Fuel and Transport Costs Surge
Petrol prices swung from a year-on-year decline of 5.4% in February to a 2.0% increase in March, marking the highest annual rate since May 2024. Diesel saw an even sharper reversal, moving from a 3.6% fall in February to a 9.6% rise in March, the highest since February 2023. These increases reflect the impact of the Iran war, which began at the end of February and drove up crude oil prices.
Air fares also accelerated sharply, likely due to the early timing of Easter holidays. Prices rose 14.5% year-on-year in March, compared to 3.8% in February.
Food and Grocery Inflation
Inflation picked up across everyday groceries, including chocolate, coffee, tea, fruit juice, eggs, and bread. Ice cream saw the biggest jump among food items, rising from 1.7% annual inflation in February to 6.3% in March.
Offsetting Factors: Clothing and Electricals
Clothing inflation slowed, with women's clothes rising 0.9% year-on-year (down from 3.0% in February), men's clothes up 0.2% (down from 1.0%), and children's clothes falling 3.6% (compared to a 0.5% drop in February).
Computer software prices swung from 2.7% inflation in February to a 13.8% decline in March. Fridges, freezers, and irons also moved from positive to negative inflation. Price rises slowed for margarine, crisps, potatoes, and cereal.
Examples of Accelerating Inflation (February vs March)
- Diesel: -3.6% to +9.6%
- Passenger air travel: +3.8% to +14.5%
- Petrol: -5.4% to +2.0%
- Ice cream: +1.7% to +6.3%
- Chocolate: +7.8% to +10.9%
- Coffee: +6.3% to +9.0%
- Tea: +4.1% to +6.7%
- Fish: +2.0% to +4.5%
- Fruit and vegetable juices: +0.1% to +1.7%
- Rice: +0.1% to +1.6%
- Eggs: +3.7% to +4.6%
- Fruit: +2.5% to +3.1%
- Pasta and couscous: +3.9% to +4.4%
- Bread: +2.8% to +3.3%
Examples of Easing Inflation (February vs March)
- Software: +2.7% to -13.8%
- Fridges and freezers: +7.5% to -0.6%
- Irons: +0.1% to -5.5%
- Coffee machines and tea makers: +5.4% to +0.8%
- Passenger train travel: +5.8% to +1.9%
- Children's clothes: -0.5% to -3.6%
- Margarine and other vegetable fats: +5.2% to +3.1%
- Women's clothes: +3.0% to +0.9%
- Crisps: +2.0% to +0.3%
- Men's clothes: +1.0% to +0.2%
