LONDON — Annual consumer price inflation in the United Kingdom increased to 3.3% in March from 3% in February, the Office for National Statistics reported. The rise was in line with market expectations.

Motor fuel prices climbed 8.7% in March, the largest monthly increase since June 2022. Airfares and food prices were also higher, movements tied to a spike in energy prices as the Iran war disrupted energy supplies.

The Strait of Hormuz has been largely closed to oil tanker traffic since the onset of the Iran war. Over the past couple of weeks, oil prices have oscillated between $90 and $100 a barrel, compared with around $60 a barrel before the conflict began.

"Not our war, but it is pushing up bills for families and businesses," Treasury chief Rachel Reeves said. Inflation is set to rise further in coming months, possibly to 4%, as higher energy prices impact household bills. No economist currently expects inflation to reach the above-11% levels seen after Russia's February 2022 invasion of Ukraine, partly because oil and gas prices have not spiked as much and partly because interest rates are higher.

The economic fallout from the Iran war ended expectations that the Bank of England would cut borrowing costs. Before Feb. 28, financial markets had expected the central bank to lower its main interest rate from 3.75%, given forecasts that inflation would fall toward its 2% target in spring. Economists now expect policymakers to keep interest rates on hold at the April 30 meeting, and to monitor whether the inflation spike spreads through the economy via higher wages.

"It will be hard to see workers and firms being able to push through higher wages and prices, given the relative weakness of both the labor market and the British economy," said Luke Bartholomew, deputy chief economist at Aberdeen. "For now though, the Bank of England is likely to remain in wait-and-see mode, keeping policy on hold next week and maintaining maximum optionality about whether interest rates ultimately end up increasing or decreasing later this year," he added.