Closing summary
Time for a recap.
Fears of a “Trumpflation” hit to UK households from the Iran war are rising.
-
Average fixed mortgage rates on both two and five-year loans have risen again today, data from MoneyFacts shows.
The jump comes three days before the Bank of England sets interest rates, with policymakers widely expected to leave borrowing costs unchanged.
The turmoil in the lending market means the lifetime of many mortgage products has shrink in recent weeks.
Petrol and diesel prices have risen today too, according to the RAC, who forecast further rises in the coming days.
But there are signs of relief in the energy market today. Crude oil prices have dropped, after treasury secretary Scott Bessent said the US was letting Iran continue to ship its oil via the Strait of Hormuz.
Brent crude is now down 1.1% today at just below $102 a barrel, having hit $106.50 when trading began last night.
The UK government has announced £53m of support for households reliant on heating oil.
UK petrol and diesel prices up again
The cost of petrol and diesel has risen again today, as retailers continue to raise prices at the pumps.
The RAC reports that the average price of a litre of petrol has risen to 141.74p, a rise of around 30p today. Diesel is up 60p to 161.20p a litre.
Last week, chancellor Rachel Reeves asked the competition watchdog, the Competition and Markets Authority (CMA), to “crack down” on “rip off” fuel prices.
But despite that intervention, the RAC suspects further price rises are probably around the corner.
RAC head of policy Simon Williams said:
“Drivers with diesel cars are really feeling the heat with the average price at the pump climbing above 161p a litre for the first time since early November 2023. Prices have shot up 19p a litre in just over two weeks, adding over £10 to the cost of a full tank. The average cost of filling up a 55-litre family car with diesel is now £88, whereas for petrol it’s £78.
“RAC analysis of wholesale fuel data shows that petrol is now likely to rise in the next week or so by another 3p to an average of 145p a litre and diesel by 9p to 170p.”
