The report, published on Tuesday and sponsored by Imagine Co-operative Childcare, is based on figures from Children's Information Services in England, Wales and Scotland.
The yearly cost of a nursery place for a child under two is now £8,368 in England, £7,384 in Wales and £7,332 in Scotland.
Families in Wales experienced the highest rise in childcare fees, but in Scotland costs have fallen slightly since last year, by 3 per cent.
In England, costs for a child under two have gone up to an average of £159 a week and for a child aged two and over to £149 a week - an increase of nearly 5 per cent in a year.
Alison Garnham, joint chief executive of the Daycare Trust, said that in light of these figures the Government needed to increase investment to expand the free early years entitlement to 20 hours a week, 48 weeks of the year, for all two-, three- and four-year-olds.
She added, 'We are also calling on them to inject more money into subsidy for out-of-school childcare, a much-needed area where costs are soaring by six times the rate of inflation.'
Maureen Burgoyne, owner of Clevedon Montessori Nursery School in Somerset, said the failure of the nursery education grant to cover fees and the rise in utility bills put extra pressure on nurseries who needed to charge parents a rate that kept their businesses sustainable. 'It is not a matter of making a profit but covering our costs and providing a living wage for us,' she said.
Purnima Tanuku, chief executive of the NDNA, said, 'In recent months, nurseries have seen dramatic rises in the cost of providing childcare with increases in the minimum wage, utilities, business rates, staff training and food. Private and voluntary nurseries rely on parental fees to support running costs, so face little choice but to increase fees when costs go up.'
For a pdf of the findings go to: DaycareTrust