The annual rate of inflation increased against last month - and is now at its highest level since May 2012.

As measured by the Consumers Prices Index, the inflation rate rose to 2.2 per cent in March, up from 1.9 per cent the previous month.

The three main drivers for inflation are transport, housing and fuel costs.

Global oil prices, up from $39 a barrel in 2016 to $52 in March this year, plus a deterioration in the Sterling exchange rate, has led to the rising cost of diesel, petrol and home heating fuel.

Inflation, as measured by the Retail Prices Index, increased by 1.3 per cent to 7.9 per cent.