UK inflation hits 7% amid rising fuel prices
The annual rate of inflation hit a new 30-year high with a rise of 7% in the 12 months to March 2022, from 6.2% in February, as higher fuel prices dragged down largest contribution to the rise in the monthly rate. .
This is the highest 12-month consumer price index (CPI) inflation rate in the National Statistics series, which started in January, according to the Office for National Statistics (ONS). 1997. This is also the highest rate in the historical modeled series since March 1992, when it was 7.1%.
In addition, the consumer price index including homeowners’ housing costs (CPIH) rose 6.2% from 5.5% in February.
The largest upward contribution to the HICP came from housing and household services at 1.49%, mainly due to a strong increase in electricity, gas and other fuels, and costs housing for owner-occupiers.
Transport was the second largest contributor to the rise in the annual CPIH inflation rate in March 2022, which increased by 2.4% between February and March, mainly due to fuel and used cars.
Average petrol prices rose by 12.6 pence per liter between February and March 2022, the biggest monthly increase on record since 1990. Similarly, diesel prices have risen by 18.8 pence per liter this year , compared to a rise of 3.5 pence per liter a year ago.
However, in March 2021, the main upward contributions to the monthly rate came from clothing and footwear, and transport (mainly fuels), partially offset by a downward contribution from food.
Additionally, higher prices for furniture and household goods led to a 0.09% rise in headline HICP inflation year on year, with prices up 1.9% on the month in 2022, against a weaker increase of 0.8% a year earlier.
Grant Fitzner, ONS chief economist, said: “Among the biggest increases were petrol costs, with prices mostly collected before the recent cut in fuel duty, and the furniture.
“The price of goods leaving UK factories continued to rise dramatically, with metal and transport products reaching record levels and food reaching their highest rate in over a decade. Raw material costs also increased, with a notable increase in the price of crude oil.