Inflation has leapt up to its highest level for three and a half years, reaching 2.3% in February.

The Consumer Price Index figure has jumped from 1.8% in January, according to the ONS.

The rate is the highest since September 2013, having steadily increased since late 2015.

Rising transport costs, particularly for fuel, were the main contributors to the increase in the rate, the ONS stated.

Richard Theo, CEO of Wealthify, said: “Inflation is the grim reaper of cash savings, and now that it has risen above the Bank of England’s target to 2.3%, it will be more deadly than ever.

“We are suffering a silent savings crisis. Rising inflation is another blow to Britons who already suffer rock-bottom interest rates and minimal returns from their cash savings. When inflation sat at 1.8% it was wiping £7.98bn from Britain’s £700bn cash savings annually. With no movement from the MPC on base rate, inflation will continue to erode billions of pounds every single year.

“With inflation at its highest level since 2013, the cash savings account has become the finance equivalent of the chocolate teapot.”

Calum Bennie, Scottish Friendly’s savings specialist, said: “If proof was needed that a squeeze is underway, this is it. And with prices expected to rise further this year as a result of the fall in sterling, things will only get tougher for consumers whose wages are not rising sufficiently to keep pace. Shopping smarter or even cutting back spending are some of the ways we will cope while still trying to put money aside for the future.”

Ben Brettell, Senior Economist, Hargreaves Lansdown, said: “Today’s inflation bulletin from the ONS feels somewhat like Groundhog Day, as the fall in sterling continues to make its way through to the high street.

“The figure exceeded consensus forecasts of 2.1%, but despite this the market reaction was relatively muted, with sterling gaining around a third of a cent and the FTSE trading a few points lower.”

He said that despite elevated inflation, those hoping for higher interest rates are likely to be in for a long wait.

He said: “I expect the Bank to look through these higher numbers and keep bank rate at 0.25% for the remainder of this year. As for the next few months’ inflation bulletins – expect more of the same.”