Iran war is expected to keep inflation above target going forwardpublished at 06:32 GMT
06:32 GMT
Dharshini David
Deputy economics editor
Today’s inflation figures were collected before the war in Iran began. But they’ll be a reminder that price pressures were lingering then.
Inflation overall is expected to have remained around 3% in February, as services such as restaurant meals saw more persistent rises.
And the figures we get in the next few months are likely to show a hoped-for drop in inflation to the 2% target has been derailed.
The rise in petrol, diesel and heating oil will nudge up the rate, and any rise in home energy bills will add to that, come the summer.
Those items actually make up a small proportion of the basket of goods and services we buy that official statisticians use to calculate inflation.
But higher energy costs may also impact the prices of other items, such as food.
At present, economists reckon inflation could end the year around 3.5% – unwelcome, but not near the levels we saw at the start of the war in Ukraine.
But much, in such a volatile environment, could change – in either direction.
