| Increases on alcohol and tobacco taxation in this year's budget have helped to drive wholesale inflation to its highest rate in nearly 17 years according to figures from the Office for National Statistics (ONS).
ONS figures showed the annual output price inflation reached 6.2% in March, its highest level since May 1991 and a 0.3% rise from February's figure.
Last week saw the Bank of England's Monetary Policy Committee (MPC) cutting interest rates to 5%, but will have to balance the dangers of a flagging economy with the threat of further inflation.
"The figures serve to underscore the difficult balancing act the Bank of England faces at the moment," stated George Johns, economist at Barclays Capital.
Some business groups have been lobbying for further reduction to interest rates in May, but it is uncertain whether the MPC will cut rates and risk further inflation.
Customer inflation remained steady at 2.5% through March.
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