Input prices rose 14.6pc in the year to March, which was just off the previous month's 28-month high of 14.9pc. Prices were up 3.7pc on the previous month.
Economists had been expecting output price inflation to ease a little from February's 5.3pc but, month-on-month, prices rose 0.9pc.
"Worse may be yet to come," said Chris Williamson, chief economist at researchers Markit. "Oil prices have since hit a record high in sterling terms and supply chain disruptions from the Japanese earthquake could also drive up prices for certain highly sought-after components."
The pound climbed 0.4pc to more than $1.63 - its strongest since January - shortly after Friday's data, as investors saw it as underlining the case for a rise in interest rates to combat inflation and the pressures it puts on people's finances.
However, other data underlined the opposite argument, as a lacklustre performance from construction in February lent weight to concerns the economy may not have bounced back as strongly as hoped after the snow hit and so cannot cope with an increase.
The ONS said construction output grew 8.6pc on the previous month but was still down on a year ago, prompting RBS economists to halve their forecast for GDP growth in the first quarter to 0.4pc. That meant they pushed back their expectations of a rate rise from May to August.
Recent data showing factory output was flat month-on-month in February have also given pause for thought.
Friday's two releases "neatly highlight the dilemma" facing the Bank of England, said Stuart Green, an economist at HSBC. "Rising commodity prices will continue to buffet the economy, but should the [Monetary Policy] Committee feel the need to tighten policy in response, they will be choosing to remove stimulus from a domestic economy that is currently showing only a weak level of underlying growth," he said.
The Bank of England on Thursday kept interest rates at their record 0.5pc low, indicating policy makers prioritised safeguarding the UK's economic recovery over tackling the inflation risk.
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