Overall inflation in the UK increased by 3.4 per cent in the 12 months to March 2026, according to the latest figures from the Office for National Statistics (ONS).

This marks an increase from the 3.2 per cent which was reported in the 12 months to February 2026.

On a monthly basis, inflation increased by 0.6 per cent in March 2026 compared to a rise of 0.3 per cent in the same period in the year prior.

The food and non-alcoholic beverage prices rose by 3.7 per cent year-on-year in March, which was an increase from 3.3 per cent inflation in February. The food and drink inflation went up by 0.3 per cent in March on a monthly basis.

In particular, the prices of chocolate and confectionery, meat, fish and soft drinks rose, causing an overall small upward effect in the food and drink category. This was offset by a decrease in prices across bread and cereals and dairy products.

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This comes as the conflict in the Middle East continues to put pressure on retailers and disrupt the overall supply chain.

The Food and Drink Federation (FDF) recently revised its UK inflation estimates and expects inflation to reach 9 per cent by the end of the year due to the ongoing conflict.

Chief economist of the FDF Dr Liliana Danila said: “The clouds are gathering, but the storm has not yet broken on rising food and drink inflation. The war in Iran has delivered a cost shock that is already too large for manufacturers to absorb in full.

“The impact on prices will take time to work its way through the system, but it’s only a matter of time before it does.

“For manufacturers, long-term contracts with suppliers and retailers mean it can take up to a year for higher costs to be fully passed through. But where products are less processed, or supply chains are shorter, prices will move more quickly.”