The figures released have emerged as a bad news for savers, who will witness the real value of their savings to vanish up fast, if they cannot find accounts paying rates at par with the inflation climb.

As per the financial website, Moneynet, savers paying basic rate tax are required to find an account paying over 4.25% in order to ensure their savings are at par with inflation. Higher rate taxpayers would need to find an account paying 5.67% to match the CPI figures.

The pickup in inflation last month was expected initially, even though the size of the rise was not.

According to the consumer prices index (CPI), the cost of living registers a 3.4% rise on a year ago, compared with 3% in the year to February. The chances of it landing back to 3% in April - particularly given the disruption to air travel, look remote.

Economists cite that the annual rate of price rises is triggered not just by the present scenario, but what happened a year ago. In the case of the March data, released by the Office for National Statistics, gas bills marked a rise in March 2009, but were flat this year.

Petrol prices for 2010 were also witnessed to mark a rise, while the rate of deflation in clothing and footwear eased. Core inflation, which strips out food, alcoholic drink, tobacco and energy, climbed from 2.9% to 3%.