UK Inflation hits 3.3% due to Iran War - what it means for your money

UK Inflation hits 3.3% due to Iran War - what it means for your moneyThe Iran war fuelled rise in inflation risks being felt by families is many ways, from the cost of the weekly food shop to mortgage repaymentsCommentsMoneyGraham Hiscott Business and Consumer Editor07:20, 22 Apr 2026Updated 07:37, 22 Apr 2026View 3 ImagesFamilies face a price shock from higher food bills in the months ahead(Image: Getty)Millions of UK households face a new bout of cost of living misery, this time triggered by the Middle East conflict.‌Until the war erupted at the end of February, economists had been predicting that inflation would ease as the year progressed, and would eventually get back to the Bank of England’s all-important 2% target. But the hostilities between US President Donald Trump, along with Israel, and Iran has sent energy costs soaring again.‌The Office for National Statistics said the consumer prices index measure of inflation dropped to 3% in February. But all eyes were on what would happen in March, the first full month of the war. The jump to 3.3% may well have been expected but is a setback for families - and is the first increase since last December. It is still early days, with the fall-out from the conflict set to be felt for many months - even years - to come, even if the two sides reached an agreement.‌Here we look at how UK households’ finances have impacted already, and what the future may hold.View 3 ImagesRising inflation has scuppered the chances of big mortgage rate cuts (Image: PA)FoodFamilies have been warned food inflation could more triple by the end of the year.‌The cost of food and drink rose by 3.7% in the year to March - up from 3.3% in February - and is expected to rise in the months ahead as energy and other costs feed through.Industry body the Food and Drink Federation estimated grocery inflation could jump to 9% or 10% by Christmas, even if the conflict is resolved soon. Karen Betts, FDF chief executive, explained: “Energy is embedded in eve...