span>span>Wednesday 13th April /span>span>2022/span>span> - 07:47 (BST)/span>/span>
Figures released by the Office for National Statistics (ONS) have shown UK inflation jumped to 7% in the 12 months to March, significantly above forecasts of 6.7% and the highest level since 1992.
The main upward pressure came from rising transport costs - with average petrol prices rising by 12.6p per litre between February and March, compared to the 3.5p per litre between the same months of 2021.
Oil and gas prices continued to be affected by the ongoing conflict in Ukraine, with many countries now looking into freeing up large reserves to help ease global demand.
Core inflation, which excludes volatile items such as energy, food, alcohol and tobacco, rose to 5.7% in March - up from 0.9% in the same period last year and also above the market forecast of 5.4%.
The latest readings leave inflation now sitting three time higher than the Bank of England’s 2% target and significantly higher than the rate of “around 6%” that it forecast at its last meeting. The UK central bank will now have to carefully consider how fast it increases interest rates along with reducing its post-pandemic asset purchasing facility.
Elsewhere, data released by the ONS yesterday showed UK unemployment dropped below pre-pandemic levels during March and now sits at the joint-lowest point since the 1970’s. The report also showed wages failed to keep up with rising prices - basic earnings increased by 4% last month compared to inflation reaching 6%.
