UK inflation rises to 3.3% in March as petrol prices push up costs

The queue at the petrol station on Canterbury Road stretched longer than usual last week. What drivers didn’t know was that they were witnessing the very trend that would push UK inflation higher in March 2026.

Consumer prices rose by 3.3% in the 12 months to March 2026, up from 3.0% in February, according to new figures from the Office for National Statistics. The increase marks a slight reversal in the downward trajectory that has characterised inflation since its double-digit peaks in 2022-2023.

Motor fuels made the largest upward contribution to the monthly change in both the Consumer Prices Index and its housing-cost-adjusted counterpart, CPIH, which rose to 3.4% from 3.2% the previous month. Yet beneath these headline figures, a more fine-grained picture emerges.

The Numbers Behind the Rise

Core inflation – which strips out volatile energy, food, alcohol and tobacco prices – actually eased slightly. Core CPI fell from 3.2% to 3.1%, even as core CPIH dropped from 3.4% to 3.3%.

This divergence tells the story of March’s price pressures. Goods inflation accelerated from 1.6% to 2.1%, while services inflation climbed from 4.3% to 4.5%. But clothing prices provided some relief, making the largest downward contribution and partially offsetting the fuel-driven increases.

Monthly price changes were more pronounced than in previous years. CPI rose 0.7% in March 2026 compared with just 0.3% in March 2025, while CPIH increased 0.6% against the same 0.3% comparison.

What’s Driving the Changes

The ONS data reveals that global oil market movements have fed quickly into UK transport costs, as they typically do. This direct transmission from international commodity prices to forecourt costs demonstrates how global economic forces can swiftly impact household budgets.

Despite the uptick, inflation remains well below the peaks seen during the cost-of-living crisis. Between January and March 2026, headline CPI readings of 3.1%, 3.0% and 3.3% respectively suggest price pressures have stabilised within a relatively narrow band.

But that band sits stubbornly above the Bank of England’s 2% target. The Monetary Policy Committee uses CPI as its primary measure when setting interest rates, meaning March’s figures will inform upcoming decisions about when and how quickly to reduce rates from their current restrictive levels.

Key Takeaways

• UK inflation rose to 3.3% in March 2026, driven primarily by higher petrol and diesel costs
• Core inflation measures continued to ease, suggesting underlying price pressures are moderating
• Both goods and services inflation increased, though clothing prices provided some downward pressure

What This Means for Kent Residents

Kent households face continued budget pressure from prices rising around 3.3% annually, with transport costs above all affected given the county’s car-dependent commuting patterns along the M2, M20 and A2. Higher fuel costs will likely feed through to increased prices in shops and supermarkets as distribution expenses rise, while local logistics firms around Dover, Folkestone and Ashford may need to adjust their pricing. Residents should consider reviewing household budgets to account for ongoing price pressures, chiefly for fuel and transport, while those struggling with costs can access support through local Citizens Advice offices or council welfare schemes.