Net migration to the UK rose to 212,000 in the year to September 2013 pushing it further away from government targets, according to official figures.
The Office for National Statistics said the net flow - the numbers moving here minus the numbers leaving the UK - rose from 154,000 in the previous year.
David Cameron says he wants to cut net migration to below 100,000 by 2015.
The increase has been driven by a big increase in the number of European Union citizens coming to Britain.
There was an increase in new arrivals from Poland, Spain, Italy and Portugal.
Some 24,000 citizens of Romania and Bulgaria also arrived in the year to September 2013, nearly three times the 9,000 who arrived in the previous year, the Office for National Statistics said in a report. Around 70% came to work, while 30% came to study.
Official figures for how many Romanians and Bulgarians have arrived since working restrictions were lifted on 1 January have yet to be released.
'Pull factor'Some 532,000 people immigrated to the UK in the year ending September, up from the 497,000 people who arrived during the previous year, while 320,000 emigrants left the country, down from the 343,000 the previous year.
The number of EU citizens arriving in the UK rose to 209,000 from 149,000 the previous year, the ONS said.
But immigration of non-EU citizens saw a statistically significant decrease to 244,000 in the period, down from 269,000 the previous year.
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Immigration minister James Brokenshire: "Where we have direct levers on the non-EU, we're actually seeing continued falls"
The overall increase of 58,000 in the net migration figure will come as a blow to Prime Minister David Cameron and Home Secretary Theresa May's aim of cutting it to the "tens of thousands" by the time of the next election in May 2015.
But the figures are still down on the levels of net migration reached in the early days of the coalition - revised Office for National Statistics figures suggest it reached 263,000 in the year to September 2011.
End Quote Nigel Farage UKIP leaderIt is utterly pointless setting immigration targets when you can't even decide who comes in to this country"
Immigration Minister James Brokenshire insisted the government had not abandoned its target and its focus "absolutely remains on bringing net migration down to those sustainable levels".
He said the immigration flows that the government had some control over, from outside the EU, were continuing to come down.
He told the BBC: "It is down to levels we have not seen, in terms of net migration from outside the EU, since 1998.
"But what it does show is a very significant increase in migration from the EU itself - doubling - and that's why we remain focused on dealing with the abuse of free movement and also addressing some of those benefit and welfare factors that may be a pull factor to attract people to come to the UK."
'Smoke and mirrors'He said the government would continue to push at an EU level for restrictions on the free movement of workers.
UKIP leader Nigel Farage, who campaigns for Britain's exit from the EU, said: "These latest figures show just how out of control the government is when it comes to controlling immigration in and out of the UK.
"It is utterly pointless setting immigration targets when you can't even decide who comes in to this country.
"Until we end the open door immigration policy with the EU and take back full control over our borders nothing can really be done. It's all smoke and mirrors."
Net migration fell significantly in 2012, as the coalition government's crackdown on "bogus" student visas and tighter restrictions on non-EU migrants took effect.
But it began rising again last year, driven by a drop in the number of British citizens emigrating to other countries and an influx of job seekers from struggling EU nations - especially Spain, Portugal and Greece.
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