UK inflation has remained steady at 3 per cent, but experts have warned households could face another “twist” to the cost of living story in the months ahead due to the war in the Middle East.
The rate of Consumer Prices Index (CPI) inflation has been gradually easing back towards the Bank of England’s 2 per cent target level since last summer.
On Wednesday, figures showed inflation had held relatively steady in February from the 3 per cent level recorded in January.
Economists have been ripping up previous projections in recent days and warning that the US-Israel war with Iran has muddied the outlook for the economy.
Chancellor Rachel Reeves warned on Tuesday that economic challenges from the Iran war may be “significant” and contingency planning is underway for energy bill support “for those who need it most”.
The crisis in the Middle East has pushed up oil and gas prices, hitting motorists as they fill up at the pumps and potentially pushing up domestic energy bills later this year.
Ms Reeves said work is underway on targeted help for households when the current energy price cap expires at the end of June and global prices could push up domestic bills.
