Arabic version: معدل التضخم في المملكة المتحدة ثابت عند 3% قبل ارتفاع أسعار النفط

The UK inflation rate stayed at 3% in the year to February as lower fuel prices were offset by a rise in the price of clothing. According to BBC News, these figures were gathered before the US-Israel war with Iran began – when the figures show the price of petrol was at its lowest since June 2021. Pump prices for petrol and diesel have since soared following a surge in wholesale oil prices due to the outbreak of the conflict.

The Office for National Statistics (ONS) reported that the average price of petrol was 131.6p per litre in February, the lowest price since June 2021. However, current data from the RAC indicates that petrol prices have now risen to an average of 149.44p per litre. Diesel prices have also surged, reflecting a significant increase in wholesale oil prices due to the ongoing conflict.

Grant Fitzner, chief economist of the Office for National Statistics, noted that while inflation has decreased from a high of 11.1% in October 2022, prices themselves are not coming down, but simply rising at a slower pace. Clothing and footwear prices rose by 0.9% in the 12 months to February compared to no change in price in the 12 months to January.

The rising fuel costs have already begun to impact businesses. James Palmer, who runs the Acme Bus Company, reported a dramatic increase in fuel prices, now paying roughly £1.86 per litre compared to £1.21 just three weeks ago. This escalation in costs could lead to difficult decisions for businesses reliant on fuel, particularly in the transport sector.

Analysts predict that the inflation rate may increase further, with some forecasting a peak of 4.6% by the end of the year. The Bank of England is unlikely to reduce interest rates this year, as rising inflation typically prompts an increase in rates to control spending. Chancellor Rachel Reeves is implementing measures to alleviate the cost of living, but experts say her efforts are likely to be thwarted by the war.