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UK inflation rate rises to 3.3% in March after Iran war pushes up fuel prices

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UK inflation rises to 3.3% amid biggest jump in fuel prices in more than three years | Inflation

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UK inflation accelerated to 3.3% in March after the Iran war triggered the biggest jump in fuel prices for more than three years.

In the first official snapshot of the damage to living standards in Britain from the US-Israeli war on Iran, the Office for National Statistics (ONS) said the consumer prices index increased last month from a rate of 3% in February. The rise matched the forecasts by City economists.

Grant Fitzner, the ONS chief economist, said: “Inflation climbed in March, largely due to increased fuel prices … Air fares were another upward driver this month, alongside rising food prices.”

Petrol and diesel prices have soared since the start of the Middle East conflict, reflecting a jump in the global oil price to close to $100 a barrel as the closure of the critical strait of Hormuz throttles energy supplies.

Against a volatile backdrop in the war, the International Monetary Fund has warned that Britain faces the sharpest growth slowdown and joint highest inflation rate in the G7 this year amid the threat of a global recession.

March’s headline rate of inflation remains above the 2% target set by the government. The Bank of England left interest rates unchanged last month while warning that a prolonged conflict and disruption to global energy markets could force it to raise borrowing costs to stop high inflation from becoming entrenched.

Graph of the UK inflation rate from 2016 to 2026

Before the war, inflation had been predicted to fall sharply in April as measures announced in Rachel Reeves’s autumn budget, including cuts to energy bills, come into effect. However, while a drop to almost 2% had been predicted, forecasters now anticipate inflation will remain stubbornly high this year amid the mounting economic damage from the war.

The chancellor said the government was taking action to protect consumers from price increases.

“This is not our war, but it is pushing up bills for families and businesses. That’s why it’s my number one priority to keep costs down,” Reeves said. “Our economic plan is the right one and has put us in a stronger position to support families in the face of this new crisis.”

The latest snapshot from the ONS showed overall transport prices – including motor fuel costs and air fares – rose by 4.7% in the year to March, up from 2.4% in the 12 months to February, hitting the fastest annual rate since December 2022.

The average price of petrol rose by 8.6p a litre between February and March to 140.2p, the highest level since August 2024. Diesel prices rose by 17.6p a litre to 158.7p, the highest since November 2023.

Food price inflation climbed from 3.3% to 3.7%, driven by chocolate and confectionery prices before Easter, as well as meat, fish and soft drinks. The Food and Drink Federation has predicted the rate could hit 9% by December, as the closure of the strait of Hormuz hits global fertiliser supplies.

The ONS said the only significant offset came from clothing costs, where prices rose by less than this time last year.

Highlighting cooling inflationary pressures in the UK before the Iran war started, core inflation – which excludes more volatile energy, food, alcohol and tobacco – eased to 3.1%, down from 3.2% in February.

Economists said headline inflation would probably fall back in April as the government’s measures to cut energy bills come into effect. However, they predicted the rate would no longer drop close to 2%, as the mounting hit from the Middle East conflict pushes in the opposite direction.

Households are also expected to face a rise in energy bills in July when the Ofgem price cap is next updated.

Martin Beck, the chief economist at WPI Strategy, said: “How far inflation rises from here will depend heavily on developments in the Middle East.

“If recent signs of diplomatic progress translate into a sustained easing in tensions and energy supplies normalise, inflation could peak at about 3.5-4% this summer. But a renewed escalation could just as easily push inflation towards 5%.”

The Bank of England has said it remains too soon to know if the rise in the headline rate risks inflationary pressures becoming entrenched in the economy, as a weak growth outlook and elevated unemployment limit the potential for workers to demand higher pay increases and for businesses to pass on higher costs.

Financial markets predict at least one rise in interest rates this year, although they anticipate the Bank will continue to keep borrowing costs on hold at its next policy meeting on 30 April.



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Depression candy and death stares: inside the secret world of the tennis locker room | Tennis

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Back in the locker room after a successful first-round performance at the Australian Open in January, Coco Gauff caught a glimpse of a friendly face across the room. The player was scoffing sweets soon after a match, prompting Gauff to joke things must have gone well for her on court.

That laughter was not returned, for the player was stewing after a miserable day on court: “They were, like, ‘No, this is depression candy,’” says Gauff, wincing.

Part of the job description is sharing locker rooms around the world with the same people they are charged with battling on the court, an arrangement that can lead to awkward interactions for all involved. For many, such as Paula Badosa, part of the preparation for matches includes avoiding eye contact at all costs. “That’s the thing we do, I think, all of us,” she says, smiling. “We try to avoid it and just say hi. That day you avoid the conversation and eye contact for sure.”

Gauff concurs: “[With] the people I know really well, it’s not really that awkward. We’ll talk and be, ‘OK, see you out there,’ and that’s fine. But always with people you don’t know, you don’t know whether to say hi to them or not. I’m someone who usually always says hi, but the responses vary. And I understand – get in the moment.”

For Belinda Bencic, the situations where she and her opponents are grouped closely together, such as sharing a golf cart en route to the court, are more uncomfortable than sharing a locker room. Still, even she cannot avoid the strangeness of some of these scenarios: “Sometimes you are doing your hair or getting ready for the match and your opponent is right there,” she says. “You don’t know if you should say small talk or not. Everyone is different. Some players are very relaxed – we are talking – and some players don’t want to talk to you before the match.”

The awkwardness does not merely extend to the opponent that day. As Gauff’s faux pas in Melbourne illustrated, dozens of players pass in and out of the locker room after their matches each day, meaning it is a minefield of emotion. Some players are in tears after an excruciating defeat and others are raging. Sometimes it is impossible to know exactly what happened.

Aryna Sabalenka and Elena Rybakina head to court on a golf buggy before the final of the BNP Paribas Open in 2023 in Indian Wells. Photograph: Julian Finney/Getty Images

“The worst thing about sharing a locker room is seeing someone, knowing they played, but not knowing how the score went,” says Gauff. “You don’t know what mood they’re in. I always find that hard to navigate.”

After spending so much of their lives in communal locker rooms from their junior days, players quickly become used to these interactions. Madison Keys does not know any other way: “I quite enjoy it because even though you’re sharing a locker room with your opponents, you’re also sharing a locker room with friends,” she says.

“There have been moments where I know that either myself or other players have had really tough moments and you always have someone around you who can give you a hug and talk you through it. There is that immediate support. I guess other sports have that, but it’s your own teammates. It’s nice there’s an immediate sense of community versus [being] isolated.”

One obvious way to minimise awkward interactions is to spend as little time as possible in the environment. Jannik Sinner has perfected the art of getting in and out as quickly as possible: “When I started to come on tour, I was on-site a lot,” he says. “I would spend a lot of time in the locker room, a lot of time in the restaurant area. Now I’m a bit different. Especially on training days, I come here [and] when the training is over or I eat something very fast here, then I leave or I leave straight away.”

Stefanos Tsitsipas believes most players are on good terms with each other, but observes that some are less willing to greet when they cross paths. He is particularly unimpressed by people who interact differently once they achieve a modicum of success.

“One thing I don’t understand is how they develop a bit of an attitude and a bit of an ego once they make one or two good results. Their whole personality changes. I wouldn’t say arrogant – perhaps some of them.

“I just wish more weren’t attached to their results and to what they do that determines who they are. I love humble people. That’s one of the reasons I admire Giannis Antetokounmpo a lot. He’s achieved so much through basketball. He’s one of the most humble athletes I’ve ever met and spent time with. I wish more tennis players were like that.”

Gaël Monfils, Thomas Enqvist, Andrey Rublev and Casper Ruud of Team Europe in the locker room before the Laver Cup in Vancouver in 2023. Photograph: Clive Brunskill/Getty Images for Laver Cup

Others have no problems with their peers. Daniil Medvedev says his coaches, Rohan Goetzke and Thomas Johansson, often tell him stories about how messy relations between players used to be. “I heard from them that 20 years ago it was as toxic as it could be,” he says. “I was shocked. I was, like: ‘But that’s why you guys finish your careers early because it’s constant pressure.’

He told me some stories where from when you wake up you’re already under pressure. Going to the locker room, you’re under pressure.”

Nowadays, Medvedev says, the locker room is far more peaceful and largely drama free. The sport is a melting pot of different cultures, customs and background, but, according to Bencic, along with a potent serve, groundstrokes and a cool head under pressure, a key quality for a top player is tact and discretion. “It can be a little bit awkward if someone has had a bad day or just lost or something, then someone else comes in and is all happy,” she says. “It’s a shared space, so you have to really also be a little bit respectful to everyone else. Just be respectful and normal.”



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Starmer sends 'chill' through civil service, union boss says

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The ‘chill’ follows the sacking of lead civil servant at the Foreign Office Sir Olly Robbins by the prime minister.



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