The Office of National Statistics (ONS) confirmed that inflation has risen to 7%, the highest it has been in 30 years.
The data, released today (13 April) shows the Consumer Prices Index (CPI) rose by 7% in the 12 months to March.
The Bank of England believes the inflation rate will reach 8% this spring and perhaps grow even further throughout the year, but expects it to "fall considerably" over the next two years.
The ONS says the increase is due to the rising costs of energy bills and fuel, even with the fuel duty cut and freeze implemented in the Spring Statement.
Alpesh Paleja, lead economist for the Confederation of British Industry (CBI) said:
"The latest rise in inflation will not be the last. We'll see another jump over April, as the rise in Ofgem's energy price cap comes into effect. Beyond this, volatility in global commodity prices and ongoing supply chain disruption will continue to stoke price pressures.
"The result will be even higher costs for businesses, and a deep squeeze in the cost of living for households."
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