UK inflation rate rises to 3.3%, Iran conflict impacts begin to show

Golden Finance reports that on April 22, according to data released on Wednesday, the UK’s March CPI inflation rate rose from 3.0% in February to 3.3%, indicating a preliminary impact of the Middle East war on prices. Before the US and Israel launched actions against Iran, the Bank of England said that the UK’s inflation rate in April was likely to be close to its 2% target level. However, last month, the Bank of England significantly raised its inflation expectations due to energy price shocks, and it expects inflation to rise to around 3.5% by mid-2026. The International Monetary Fund predicted last week that the UK’s inflation rate will reach a peak of 4% in the coming months. Nonetheless, most of the Bank of England’s rate setters said that it is still too early to judge what impact the rise in overall inflation will have on potential price pressures in the economy, because the current employment market is weak, which may make it harder for workers to demand higher wages or make it harder for businesses to pass higher costs on to consumers. ( Dongxin News Agency )