Inflation rises to 3.3 per cent as Iran war drives up cost of fuel – Chamber

The rise of inflation to 3.3 per cent is unlikely to capture the full picture, with ongoing energy and supply pressures estimated to increase in the months ahead, Greater Birmingham business leaders said today.

According to the Office for National Statistics (ONS), inflation rose by 0.3 per cent in March 2026, up from 3 per cent in February.

Motor fuels made the largest upward contribution to this monthly change, with the Iran war pushing up prices at the fastest pace in three years.

Clothing made the largest, partially offsetting, downward contribution.

Core inflation, excluding energy, food, alcohol and tobacco, rose by 3.1 per cent in the 12 months to March 2026, down from 3.2 per cent in the 12 months to February.

Speaking about the data, Paige Bowyer (pictured), policy and research analyst at Greater Birmingham Chambers of Commerce, said: “March’s rise in inflation to 3.3 per cent suggests that recent global events are beginning to feed through into the UK economy, particularly through higher transport costs driven by fuel prices.

“However, this figure is unlikely to capture the full picture. Ongoing pressures in areas such as energy and supply chains mean further increases could follow in the months ahead.

“Businesses are already operating in a challenging environment, and this creates a difficult balancing act for the Bank of England as it weighs the need to control inflation against the risk of slowing growth.

“While support for certain, energy intensive manufacturers is welcome, it does not reach wide enough, nor come soon enough.

“Firms across various sectors continue to face a range of cost pressures.

“For more insight into how these challenges are affecting firms across the region, our upcoming Q1 Quarterly Business Report briefing will provide the latest data and business perspectives.”

Meanwhile, Greater Birmingham businesses are being encouraged to have their say on how events in the Middle East are affecting their operations through a survey.

It also factors in other pressures on business including changes to employment rights and increases to the National Living Wage.