PRICES are rising at their fastest rate for 30 years, driven by a sharp increase in petrol and diesel costs. 

The UK inflation rate rose to 7% in the year to March, the highest rate since 1992 and up from 6.2% in February. 

Prices are rising faster than wages and there is pressure on the government to do more to help those struggling. 

The cost of living is expected to rise even further after the energy price cap was increased, driving up gas and electricity bills for millions. 

Inflation is the rate at which prices rise. If a bottle of milk costs £1 and that rises by 5p, then milk inflation is 5%.

Fuel had amongst the biggest impact on the inflation rate, with average petrol prices rising by 12.6p per litre between February and March, the largest monthly rise since records began in 1990, the Office for National Statistics (ONS) said.

This compares with a rise of 3.5p per litre between the same months of 2021. 

Diesel prices also rose by 18.8p per litre this year, compared with a rise of 3.5p per litre a year ago.

The rise in the inflation rate was higher than the 6.7% expected by analysts and was also driven up by furniture, restaurant and food prices. 

The figures for March do not yet reflect the average 54% increase in energy bills that took place from 1 April when the energy price cap was raised.

Since late last year, prices have been rising fast as pandemic restrictions have been eased and firms face higher energy and shipping costs which they have passed on to consumers.

Russia’s invasion of Ukraine is now adding to the pain, as the price of oil and other commodities climb higher.

Russia is one of the world’s largest oil exporters and demand for oil from other producers has increased since the invasion, leading to higher prices. 

Although the UK imports just 6% of its crude oil from Russia, it is still affected when global prices rise.

Ukraine and Russia are also the world’s main suppliers of sunflower oil and the war has hit prices. 

In the UK, the price of oils and fats for food increased by 7.2% in March, according to the ONS. 

Andrew Selley, chief executive of BidFood, a wholesaler which supplies 45,000 caterers and food service businesses across the UK, said increasing electricity, fuel and packaging costs were impacting the price of all its products. 

But he told the BBC products affected by the war in Ukraine, such as wheat-based foods, sunflower oil, chicken and white fish, were particularly hard hit. 

“I’ve been in the business for over 30 years. I’ve never seen a situation where everything seems to be going up [in price],” he said, adding that some of these costs would ultimately be passed on to consumers.