Consumer price inflation (CPI) has risen to 3.4% in March from 3% in February, according to the Office of National Statistics.

The Bank of England’s government-set target is just 2%. Oil and gas prices were cited as main drivers for the increase.

Ian McCafferty, CBI chief economic adviser, said: “Higher petrol and seasonal food prices have pushed inflation up again. The combination of rising raw material prices and weak sterling is pushing up inflationary pressure here in the UK.