Home Office statisticians said the increase was thought to reflect both a genuine rise in hate crime and ongoing improvements in crime recording by the police.
Hate crime targeting Muslims has seen a "significant spike" following another terrorist attack in June 2017 in London, the capital's mayor, Sadiq Khan, said previously.
The Crown Prosecution Service (CPS) noted in its annual report there was a small increase of 0.7%, from 12,997 to 13,086, in the number of hate crime cases referred by police in 2016-17 compared with the previous year.
Year-on-year Hampshire saw recorded hate crimes rise by 19 per cent, with a 30 per cent increase in Surrey.
Police officers stand on Westminster Bridge the morning after an attack by a man driving a auto and weilding a knife left five people dead and dozens injured, in London, Britain, March 23, 2017.
Crucially, the Home Office report highlights how non-aggravated equivalent offences did not follow a similar trend, suggesting that the spikes in aggravated offences following the European Union referendum and recent terror attacks are indeed genuine. A pattern, the Home Office confirms occurred again following the terrorist attack in Finsbury Park.
78% - of the hate crimes in 2016/17 were race hate, the figures show.
Alison Saunders added: "We know hate crime is under-reported and that is why we ran our recent #hatecrimematters campaign aimed at raising awareness of what hate crime is and what people can do about it".
"Race hate crime was the most commonly recorded strand of hate crime in all 44 police forces and for 41 forces, religious hate crime was either the third or fourth most commonly recorded strand, after either sexual orientation or disability", the latest release said.
"The rise in hate crimes is a scar on the face of our nation".
In the year ending March 2017, two per cent of all hate crime offences included an online element, a pattern consistent with non-aggravated crimes. Hate crimes under this category were overwhelmingly harassment offences.
However, in 2016-17, the number of people prosecuted for "hate crimes" in England and Wales was 14,480, compared to 15,442 in the previous year - a 6.2 per cent fall.