UK Inflation Rises to 3.3% in March 2026

The latest figures from the Office for National Statistics released this week show that UK inflation increased to 3.3% in the 12 months to March 2026, up from 3.0% in February.

The broader CPIH measure (which includes housing costs) also rose to 3.4%, with both monthly and annual inflation picking up compared to the same period last year.

Key drivers behind the increase:

• Transport costs, with the largest upward effect coming from motor fuels. The average price of petrol rose by 8.6 pence per litre between February and March 2026

• Housing and household services remained the biggest overall contributor to inflation

• Rising services inflation (around 4.5%) indicates continued domestic cost pressures

Some downward pressure came from categories like clothing and footwear, but this was not enough to offset the overall rise.

What this means: Inflation remains above the Bank of England’s 2% target, suggesting ongoing cost pressures for businesses and households. The increase also points to persistent challenges in key areas such as energy, transport, and services.

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Source: ONS