UK inflation rose to 3.3% in March, driven mainly by higher fuel prices following the Iran conflict, according to the Office for National Statistics.

Energy costs, along with airfares and food prices, contributed to the increase, while clothing prices slightly offset the rise.

Economists say the UK is particularly exposed because it relies on imported energy, and further price increases are expected if the conflict continues.

The Bank of England now faces a difficult decision on interest rates, with most analysts expecting it to hold rates steady despite rising inflation, CNBC has reported.

Experts warn that inflation could climb above 4% later this year as energy and food costs continue to rise.