Skip to content
Search
AI Powered
Latest Stories

Inflation strikes 30-year high in March

Inflation strikes 30-year high in March
iStock image
Getty Images/iStockphoto

Britain's annual inflation rate soared to the highest level in three decades last month as energy prices rocket, official data showed Wednesday.

Inflation surged to 7 per cent in March from 6.2 per cent in February, the Office for National Statistics (ONS) said in a statement. Food inflation stood at 5.9 per cent.


"Broad-based price rises saw annual inflation increase sharply again in March," said ONS chief economist Grant Fitzner.

"Amongst the largest increases were petrol costs."

Prices of restaurant meals and hotel rooms also rose steeply last month after falling a year earlier during a pandemic lockdown in the UK.

Costs are surging worldwide as economies reopen from pandemic lockdowns and on fallout from the war in Ukraine.

US inflation rose by a huge 8.5 per cent over the 12 months to March, the biggest jump in four decades, official data showed Tuesday.

Responding to the figures, Helen Dickinson, chief executive of the British Retail Consortium, said retailers are taking measures to ease the pressure despite the cost increases to their operations.

“Households around the UK will be feeling the pinch as the cost of living continues to rise. Retailers are trying to help consumers by expanding their value ranges and doing all they can to keep the price of essentials down,” she said.

“This can be seen in the BRC’s Shop Price Index, which tracks the price of basic goods, which showed a slower rise in the price of essential foods and other products than the inflation levels report by the ONS.

“Consumer confidence has fallen significantly in recent months, as worries around personal finances rise. Households face a plethora of rising costs, with higher inflation to come as the increase in the energy price cap pushes up April’s figures. Retailers are not exempt from these pressures, as the costs of transport, energy, raw materials and staff wages all continue to rise.”

'Worrying time'

The Bank of England has predicted that UK annual inflation could reach double figures by the end of the year.

"We're seeing rising costs caused by global pressures in our supply chains and energy markets which could be exacerbated further by Russian aggression in Ukraine," Chancellor Rishi Sunak said Wednesday.

"I know this is a worrying time for many families," added Sunak.

British cost-of-living is set to soar even higher owing to an April tax hike on UK workers and businesses and a fresh surge in domestic energy bills that kicked in this month.

"Soaring energy and fuel prices were the main drivers of the rise in (UK) inflation in March, but we are paying more for everything," Myron Jobson, senior personal finance analyst at Interactive Investor, said following Wednesday's data.

"Supply shortages and production bottlenecks owing to the pandemic have forced firms to raise their prices of late," while Russia's invasion of Ukraine "has made the outlook for inflation worse", he added.

ONS Consumer Price Index figures, March 2022

Year on Year changesFeb-22Mar-22
CPI (overall index)6.2% 7.0%
01 Food and non-alcoholic beverages5.1% 5.9%
02 Alcoholic beverages and tobacco3.5% 4.8%
03 Clothing and footwear8.9% 9.8%
04 Housing, water, electricity, gas and other fuels7.2% 7.7%
05 Furniture, household equipment and maintenance9.1% 10.3%
06 Health2.6% 2.5%
07 Transport11.5% 13.4%
08 Communication1.1% 0.7%
09 Recreation and culture4.7% 4.9%
10 Education4.5% 4.5%
11 Restaurants and hotels5.0% 6.9%
12 Miscellaneous goods and services1.9% 1.9%

More for you

Britvic growth in annual revenue and profits

Strong numbers for Britvic

Britvic, the soft drinks manufacturer set to be acquired by Carlsberg, has posted robust annual results after investment in marketing and product innovation helped it maintain demand for its brands.

Over the year to Sept 30, the company’s pre-tax profits climbed 10.5 per cent to £173.2 million despite a £21.3m hit related to the proposed Carlsberg deal. Britvic stated that its growth was driven by both volume and price-mix, with strong demand for brands such as Pepsi, Tango, Lipton, MiWadi and Ballygowan.

Keep ReadingShow less
Met Police identifies four suspects in Post Office Horizon scandal

Met Police identifies four suspects in Post Office Horizon scandal

The Metropolitan Police has identified two new suspects in its investigation into possible criminal offences as part of the Post Office Horizon scandal. This takes the total number of individuals to four as the force also revealed it believes more suspects will be identified as the inquiry progresses.

Scotland Yard said members of the investigation team met with Sir Alan Bates, the leading Post Office campaigner, and fellow victims to update them on the development.

Keep ReadingShow less
Discover Britain's top hotspots for independent shops

(Photo by Chris J Ratcliffe/Getty Images)

Discover Britain's top hotspots for independent shops

New research by American Express Shop Small reveals the nation’s top 10 hotspots for independent shops, showcasing the small businesses and the valuable role they plan in their local communities.

American Express partnered with retail experts GlobalData to identify the top high streets for independent shops through ranking factors such as the number of independent outlets, variety of business types, and vibrancy of the high street.

Keep ReadingShow less
'Walkable high streets boost economy'
(Photo by Christopher Furlong/Getty Images)
Getty Images

'Walkable high streets boost economy'

Shoppers who walk and wheel spend more than those arriving by car, states a recent report, demonstrating the significant economic and social benefits of investing in walkable town centres, challenging traditional views on urban accessibility.

The findings published in third edition of "The Pedestrian Pound Report", recently published by Living Streets, the UK charity for everyday walking, come at a critical juncture for British high streets, with a record number of retail failures in 2022 and a vacancy rate of nearly one in seven by the end of 2023.

Keep ReadingShow less
Yvette Cooper

Home secretary Yvette Cooper speaking at the annual conference hosted by the NPCC and APCC on 19 November 2024

Photo: GOV.UK

Home secretary pledges to restore neighbourhood policing

Home secretary Yvette Cooper has announced plans to rebuild neighbourhood policing and combat surging shop theft as part of an ambitious programme of reform to policing.

In her first major speech at the annual conference hosted by the National Police Chiefs’ Council and Association of Police and Crime Commissioners on Tuesday, Cooper highlighted four of the key areas for reform: neighbourhood policing, police performance, structures and capabilities, crime prevention.

Keep ReadingShow less