Manufacturers increased their prices by 0.9% between February and March, leaving them 5.4% higher than a year ago, as they passed on the soaring cost of oil, food and other commodity prices, according to the Office for National Statistics.
This led to record annual prices hikes for paper products, clothing, textiles and leather in March, while food was up 7.4% year-on-year in its biggest hike since January 2009.
The higher-than-expected rate of factory gate price rises was announced the day after the Bank of England resisted pressure to hike interest rates from its record low of 0.5% in a bid to beat down inflation.
Today, oil prices hit fresh two-and-a-half-year highs after fierce fighting in Libya damaged the country's largest oil field.
Brent crude was up 1.4% to 124.2 US dollars a barrel as motorists were warned that the price of petrol at the pump is likely to rise and is set to further squeeze consumers' disposable incomes.
Manufacturers are being forced to increase their prices to their customers after their input costs rose 14.6% year-on-year, although this is slightly down on February's record high of 14.9%.
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