The UK inflation rate was unchanged at 3% in February, before Donald Trump’s Iran war drove up global energy costs, threatening a renewed price jump.

Official figures showed the consumer prices index (CPI) remained at 3%, in line with economists’ expectations but still well above the government’s 2% target.

The outlook for inflation has shifted dramatically since the onset of the Middle East conflict, which has led to soaring oil and gas prices after the effective closure of the strait of Hormuz, an important shipping route.

Bank of England policymakers had expected CPI to fall to the 2% target in the first quarter of the year, opening the way to more interest rate cuts.

However, at last week’s monetary policy committee meeting, rates were left on hold, and markets now expect the next move to be up.

The chancellor, Rachel Reeves, told MPs on Tuesday she was reviewing the options for providing targeted support to households that could face significantly higher utility bills in the coming months as a result of the conflict, now in its fourth week.

More details soon …