“That was a rise from 3.4% in February, while the bosses’ expectation of inflation across the economy has risen from 3% to 3.5%.”

“The chancellor, Rachel Reeves, met retail bosses on Wednesday at No 11 Downing Street to discuss the risks of supply shortages and price increases.”

“She has also come under pressure to cushion the blow of likely rises in household gas and electricity bills before next winter and halt plans for a 5p a litre increase in fuel duty, due to take effect by next March.”

“Reeves has repeatedly made clear that any help for households will be ‘targeted’, unlike the costly across-the-board support offered by the Liz Truss government as energy prices soared in the wake of Russia’s invasion of Ukraine four years ago.”

“The Bank of England’s policymakers will be watching UK companies’ pricing intentions closely, as they weigh up whether to raise interest rates in the coming months from their current level of 3.75%.”

“Financial markets are currently pricing in two interest rate rises by the end of the year – a sharp turnaround from expectations of rate cuts, before the war began.”

“However, the Bank’s governor, Andrew Bailey, has warned that markets may be ‘getting ahead of themselves’ and weak consumer demand may prevent companies passing on cost increases to their customers.”