UK Inflation for March climbed sharply as motor fuel prices pushed the released figure to 3.3%, notably up from February’s 3% release. The more concerning nature of this release is the fact it is the first real inflation impact since the conflict began in The Middle East, particularly after January & February showed relative stability at 3%.
In particular, we saw petrol prices rise by 8.6 pence per litre, whilst diesel rose by 17.6 pence per litre. Overall fuel prices went from a 4.6% annual decline in February, to a 4.9% rise in March to bring prices to their highest level since January 2023.
We also saw increases across Transport costs, Air Fares and food & non-alcoholic beverages as well. Clothing and footwear fell by 0.8% but in general The UK’s rate of inflation is well above the EU average of 2.8%.
Donald Trump also extended the U.S – Iran ceasefire, stating the extension would be in place until Tehran could present a unified negotiating proposal. Another round of talks are set to take place, however Tehran have so far seemingly refused to respond. One of the main sticking points stem around Iran committing to not pursuing development of nuclear weapons, which so far hasn’t come.
Keeping with The U.S, we have a Senate confirmation hearing for Trump’s Federal Reserve Chair nominee Kevin Warsh. Trump has also gone further to weigh in on the Federal Reserve’s aims with interest rates, stating that he would be disappointed if Warsh did not cut interest rates immediately once taking office next month.
Aside from all of the above, the main talking points will no doubt centre around this extension and how long it will be in place for.
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