Consumer price index (CPI) inflation increased to 3.3% in the 12 months to March, mainly due to an increase in motor fuel prices as a result of the conflict in the Middle East.

The Office for National Statistics revealed that the latest increase follows a jump of 3% in the 12 months to February.

On a monthly basis, CPI inflation rose by 0.7% in March, compared to a rise of 0.3% 12 months ago.

With motor fuels driving the largest upward contribution to the monthly change in the annual rate, clothing made the largest downward contribution, which partially offset the growth recorded in March.

In the 12 months to March, housing and household services increased by 5.3% year-on-year, while the transport sector saw an increase from 2.4% to 4.7% between February and March.

Chief executive officer at Just Mortgages and Spicerhaart, John Phillips, said that while inflation had increased, it is not as high as many would have expected.

He added: "There’s no doubt that this is still very much in our future with the conflict still ongoing and both oil and commodity prices feeling the effect. Right now, the illusive 2% target feels like a pipedream with inflation set to travel further in the wrong direction."

Chief investment strategist at Hargreaves Lansdown, Emma Wall, said that while the increase in fuel prices will be felt across the country, this is "highly unlikely" to sway policy makers into moving the Bank of England base rate next week.

She stated: "Inflation is likely to remain elevated in April too, and markets are now pricing in one rate rise later this year, but our house view is that rates are held through the conflict – returning to the expected rate cutting cycle later than forecast just a couple of months ago, but on path to neutral next year."

However, the expected base rate decision is set to lead to increases in savings rates in the coming months.

Senior personal finance analyst at Hargreaves Lansdown, Clare Stinton concluded: "Whilst the number of rate hikes expected has been tempered over the past few weeks, they have remained elevated, with fixed rates benefiting the most.

"Whilst this inflation print is unlikely to affect the Bank’s decision next week, if we see a sustained increase and a prolonged conflict, fixed terms could continue to edge higher. With multiple fixed rates available above 4.5%, savers can still lock in inflation beating returns and take advantage of these elevated rates."

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