The price of petrol and air fares have pushed March's inflation rate up to 1.9 per cent - the highest level for almost seven years.
The Office for National Statistics (ONS) is blaming the larger-than-anticipated jump on the rising cost of fuel and air travel.
Food also contributed to last month's rise, especially in the area of milk and vegetables, which have both seen recent price rises.
An economist at Global Insight, Howard Archer described the news as "a nasty surprise".
He added that it "significantly increases the chances of an interest rate hike in May".
Mr Archer believes that the MPC could raise rates, citing "significant underlying inflationary pressures stemming from high oil prices, the lack of an output gap and the tight labour market".
Inflation rose from February's figure of 1.6 per cent rise, but still remains under the government's two per cent target.
However, economists are still undecided on whether or not these figures will force the Bank of England's hand next month.
James Knightley at ING Financial Markets feels rates will stay at 4.75 per cent for the ninth consecutive month in May.
"This is largely a food and energy-related surge," he explained. "If oil prices continue to decline, then headline inflation should start dropping back as well."
Inflation may also have been affected by the fact that the data for March included Easter, whereas last year Easter fell in April.
Inflation rates rise
Financial Services
0845 108 0505
| Financial Services news |
|---|
| New reward credit card launched - Thu, 08 May 2008 |
| Cheap car insurance for green cars - Fri, 02 May 2008 |
| Car insurance available to suit all needs - Wed, 30 Apr 2008 |
| More News |