Data from the National Statistics Office showed that the latest rise in the consumer price index was the fastest in three decades, a month after the barometer for rising cost of living jumped 6.2% in February. With prices soaring across the economy, the biggest increase in pump filling costs since Russia’s invasion of Ukraine has pushed world oil prices close to record levels amid worries about supply cuts and sanctions. Average petrol and diesel prices hit record highs of 160.2 p and 170.5 liters respectively, up more than 30% last year – the largest annual increase since 1989. Restaurant and hotel prices also plummeted in March, falling a year earlier during the lockdown, while there were also increases in various types of food as the cost of a weekly store increased. The ONS said inflation was last higher in March 1992 when the CPI stood at 7.1%. Highlighting the intensity of the squeeze on living costs last month, the city’s economists had forecast a rate of 6.7%. Further increases are expected as the impact of the war in Ukraine increases the cost of energy and raw materials, with households feeling squeezed by higher gas and electricity bills. The Bank of England has warned that inflation is well on track to reach 8% this month and could peak near 10% later this year, the highest level in four decades. According to the latest snapshot, rising costs for gas and electricity bills boosted household living costs in March. However, households are expected to face more pressure this month after the 54% rise in the Ofgem energy price ceiling to reflect a rise in wholesale markets, where oil and gas prices quadrupled last year, even before from the Russian invasion of Ukraine. “The latest rise in inflation will not be the last,” said Alpesh Paleja, chief economist at the CBI’s lobby business group. “The result will be an even higher cost for businesses and a deep squeeze in the cost of living for households.” Subscribe to the daily Business Today email or follow the Guardian Business on Twitter at @BusinessDesk Official figures on Monday showed that the average wage increase did not keep pace with rising living costs. Jack Leslie, a senior economist at the Resolution Foundation, said the cost-of-living crisis was well on its way to being the biggest pressure since the mid-1970s. “The enormous scale of this inflation-driven standard of living makes it even more remarkable how little support the chancellor had for his spring statement – a decision that should definitely be reconsidered before the autumn budget.” The chancellor, Rishi Sunak, blamed rising costs on global pressure on supply chains and energy markets, which could be exacerbated by Russian aggression in Ukraine. “I know this is a worrying time for many families, so we are taking action to lighten the burden by providing περίπου 22 billion worth of support this fiscal year, including the most vulnerable through our household support fund,” he said. “We are also helping as many people as possible to work – the best way for families to be financially secure in the long run.”
