Britain?s annual inflation rate picked up much more than expected to a near 7-year high in March on bigger rises in airfares and petrol prices than a year ago, official statistics showed yesterday. The Office for National Statistics (ONS) said that the consumer price index rose an annual 1.9 percent last month, much higher than the 1.7 percent rise predicted by analysts and the 1.6 percent rate in February.

The sharp upward move towards the Bank of England?s 2.0 percent target is likely to stoke concerns that policymakers may raise interest rates, currently at 4.75 percent, further in coming months.

The ONS said airfares climbed more this March than at the same time last year and noted that the price collection period included the Easter public holidays, which last year fell in April. There were also upward effects on inflation from bigger rises in petrol and diesel prices than a year ago.

The retail price index annual inflation rate was unchanged compared with February and at 3.2 percent only slightly higher than the 3.1 percent analysts had forecast.