<\/p>\n
Petrol prices have been rising<\/p>\n
Inflation remained unchanged at 3% in February but is expected to rise in the months ahead as the war in the Middle East forces up energy prices.<\/p>\n
Until the outbreak of hostilities the \u2060Bank of England had been anticipating prices to fall close to its 2% target in April, when \u200bchanges to regulated household energy bills take effect.<\/p>\n
The bank now expects prices to rise towards 3.5% by the middle of the \u200byear and some analysts have pencilled in 4%, depending on how long the war lasts and what impact it has on world trade.<\/p>\n
There is already a certainty that the energy price cap, which comes down next month, will go back up in July and the higher prices of oil and gas are working their way into the supply chain.<\/p>\n
The war is also changing forecasts for interest rates with financial markets now looking at a three quarter-point interest rate rise this year, rather than the cuts that had been expected. However, bank governor\u00a0Andrew Bailey has said the markets should be more cautious over forecasting rate rises.<\/p>\n
Since the Iran conflict began, oil prices have increased from around $70 a barrel to more than $117 and this morning Brent crude was trading at $100.<\/p>\n
Chancellor Rachel Reeves has insisted she has the \u201cright economic plan\u201d as households brace for a surge in inflation in the coming months as a result of the war in Iran.<\/p>\n
She said the government was \u201ctaking a responsive and responsible approach to supporting working people in the national interest.\u201d<\/p>\n
Stuart Morrison, research manager at the British Chambers of Commerce said:\u00a0 \u201cFor businesses across \u00a0the\u00a0UK,\u00a0today\u2019s\u00a0inflation data\u00a0represents\u00a0the calm before the\u00a0storm.\u00a0<\/p>\n
\u201cUK firms are particularly exposed to the economic impact of the crisis in the Middle East as our electricity prices are tightly tethered to global gas prices. This will feed directly into higher costs and renewed inflationary pressure in the months to come.\u00a0\u00a0<\/p>\n
\u201cThe cost of living and the cost of doing business are two sides of the\u00a0same\u00a0coin.\u00a0The government must continue to keep all options on the table to help firms deal with rising energy bills. At the same time, tackling other cost pressures, from\u00a0business rates to national insurance, must remain a key priority.\u201d\u00a0<\/p>\n
\t #Inflation #holds #expected #rise #due #Iran #war #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"
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