Inflation in UK rose more than expected in the month of March. The consumer price index was reported up by 3.4% in the month of March, according to the data released by the Office for National Statistics yesterday. The economists were expecting a rise of 3.1% in the inflation rate in the month of March. The data by the Office for National Statistics also showed that the retail prices index was reported up by 4.4% to reach the highest levels in past 18 months.

While comparing to the figures of February, the CPI was reported increased by 0.6%. CPI was reported up by 0.3% in February and the economists were anticipating a rise of 0.4% in the month of March.

ONS said that the increase in March inflation figure was mainly attributable to the increased petrol, gas and food prices. The higher inflation rate may also force the Bank of England to lift interest rates sooner than expected.

The data by ONS showed that the cost of motoring is about 17% up comparing to the same period last year. ONS also said that food prices may increase in near future as the imports of some fruit and vegetables are affected by the recent transport problems due to the volcano blat in Iceland.