Commenting on this morning's inflation data from the ONS, Kevin Brown, savings expert at Scottish Friendly, says

“March’s data reflects the early impact of recent energy price increases, with further inflationary pressure from conflict in the Middle East still to filter through. For many UK households, this is an unwelcome development at an already difficult time.

“Scottish Friendly’s Family Finance Tracker research, conducted before the recent conflict in the Middle East, showed six in 10 people do not believe the cost-of-living crisis is over, while two-thirds remain concerned about affording their regular outgoings over the next 12 months. Inflation is rising again, and sadly its impact on households’ financial confidence is nothing new.

“For the Bank of England, an upward move in inflation would at the best of times reduce any likelihood of easing policy. A 3.3% reading today will only reinforce expectations that the BoE’s base rate will remain on hold next week.

“As inflation picks up again, the legacy of recent years’ price rises may also be reasserting itself. For savers, while cash still offers short-term stability, it is important to recognise that it can struggle to preserve real value in an environment where inflation is rising. For those looking to protect purchasing power, investing could potentially be the right long-term option.”