Soaring food bills, the rising cost of gas and electricity and tax hikes on alcohol and tobacco announced in the Budget pushed the cost of living to its highest level in more than a year.

The consumer price index (CPI) hit 3% in April, up from 2.5% the previous month and the biggest monthly rise since July 2002. Seven out of the 12 categories of goods which contribute to changes in the CPI helped to propel the increase, according to the Office of National Statistics, The largest contribution to the change in the annual CPI rate came from housing costs such as energy bills, which added 0.18% to the annual rate. Gas and electricity bills fell last year, but have risen in the past year as the major suppliers each announced a wave of price hikes.