U.K. Inflation Jumps as Iran War Pushes Fuel Prices Higher

U.K. consumer-price inflation rose to 3.3% in March from 3.0% in February as higher energy costs tied to the Iran conflict pushed fuel prices sharply up. Prices for fuels and lubricants increased 8.7% month‑on‑month—the largest jump since June 2022—adding upward pressure to headline inflation. The Office for National Statistics’ print matched economist consensus, but the rise is viewed as unlikely to force the Bank of England to hike its key rate at next week’s policy meeting. Markets are watching energy-driven inflation for its effects on consumer spending, bond yields and economically sensitive UK equities (UK 100), though near‑term policy inaction by the BoE may limit an immediate tightening-driven market reaction.