Here’s a breakdown of the elements driving UK inflation to a 30-year excessive of 7%:
- Food and non-alcoholic drinks: 5.9%
- Alcoholic drinks and tobacco: 4.8%
- Clothing and footwear: 9.8%
- Housing, water, electrical energy, gasoline and different fuels: 7.7%
- Furniture, family gear and upkeep: 10.3%
- Health: 2.5%
- Transport: 13.4%
- Communication: 0.7%
- Recreation and tradition: 4.9%
- Education: 4.5%
- Restaurants and inns: 6.9%
- Miscellaneous items and providers: 1.9%
UK factories had been additionally been hit by surging uncooked materials prices, and continued to raise their very own costs.
Input prices paid by producers rose by 19.2% within the year to March, the ONS studies, the best rate since data started in January 1997.
In March alone, the rate of enter inflation was 5.2%, up from 1.8% in February, which can be a file improve.
Metal merchandise and crude oil had been the primary elements, because of the surge in commodity costs for the reason that Ukraine conflict started.
The ONS says:
Crude oil and gasoline costs proceed to rise, pushed partially by international geopolitical tensions, together with the battle in Ukraine and commerce restrictions with Russia.
These rises are passing via to manufacturing unit gate costs for heavy trade, such as the manufacture of steel merchandise, reflecting the significance of oil and gasoline of their enter prices.
Producers elevated output costs by 11.9% in comparison with a year in the past (the best rate since September 2008), which can feed via to larger costs for customers.
These charts spotlight how costs have been surging:
Energy prices have additionally soared over the past year.
Gas costs had been 28.3% larger in March than a year in the past, whereas electrical energy was 19.2% larger.
That, although, doesn’t embrace the newest improve within the worth cap, which lifted common payments by 54% for round 22 million households this month.
Prices of kerosene for home heating rose by 44.0% between February and March 2022. Heating oil is just not lined by the Ofgem worth cap, so households who depend on kerosene (typically in rural areas) have seen costs spiral in recent months.
The soar in motor gasoline costs to file highs drove inflation up in March, the Office for National Statistics studies.
Average petrol costs had been 160.2p per litre in March 2022, in contrast with 123.7 pence per litre a year earlier.
Diesel additionally hit a file in March, at 170.5p per litre, after Russia’s invasion of Ukraine drove up oil costs.
The ONS says:
Average petrol costs rose by 12.6 pence per litre between February and March 2022, the most important month-to-month rise on file (since 1990). This compares with an increase of 3.5 pence per litre between the identical months of 2021.
Similarly, diesel costs rose by 18.8 pence per litre this year, in contrast with an increase of 3.5 pence per litre a year in the past.
ONS chief economist, Grant Fitzner, says ‘broad based’ worth rises drove inflation as much as 7% final month.
Good morning, and welcome to our rolling protection of business, the world financial system and the monetary markets.
UK inflation has accelerated to a brand new 30-year excessive, deepening the cost of living crisis.
Consumer costs jumped by 7% within the year to March, up from 6.2% in February, figures simply launched present, as living requirements proceed to be squeezed.
That’s the best CPI inflation rate since March 1992, and better than anticipated, as power, gasoline and meals proceed to rise sharply.
On a month-to-month foundation, CPI rose by 1.1% throughout March.
This soar in inflation means employees are taking an actual phrases pay reduce. Total pay (together with bonuses) rose by 5.4% per year within the three months to February, whereas common pay rose 4%.
Inflation is predicted to rise once more in April, probably over 8%, because of the 54% improve within the power cap. That will intensify the strain on households, with economists predicting this will likely be the worst parliament on record for living standards growth.
Inflation is hitting business confidence too. Sentiment amongst monetary providers companies has dropped at its quickest tempo since September 2019, the newest CBI/PwC Financial Services Survey launched this morning discovered.
Inflation can be a world drawback proper now – in America it climbed to eight.5% final month, a 40-year excessive, as gasoline and meals costs jumped.
And in a single day, it has prompted New Zealand’s central financial institution to lift rates of interest by half a share level, its largest improve in 22 years, after inflation there hit 5.9%
- 7am BST: UK shopper inflation report for March
- 7am BST: UK producer costs inflation report for March
- 9am BST: IEA releases month-to-month oil report
- 9.30am BST: UK home worth index for February
- 3pm BST: Bank of Canada units rates of interest