The UK inflation rate rose to 3.4% in March from 3% in February, according to figures released by the Office for National Statistics.

The rise in the Consumer Prices Index (CPI) - the measure of the average price of consumer goods and services purchased by households - was greater than economists had predicted.

Increasing petrol prices and rising energy prices were an important factor in rising consumer prices, according to the ONS.

Retail Prices Index (RPI) inflation, which includes housing costs, also rose sharply to 4.4% in March from 3.7% in February.