The massive rise in reports but fall in prosecutions, recorded in the Crow Prosecution Serves' (CPS) Hate Crime Annual Report, could suggest some of the additional reports are less credible, meaning they do not make it to court.
It also revealed there was a "genuine rise in hate crime around the time of the European Union referendum" and after the Westminster Bridge terror attack in March that killed five people.
"Hate crimes are still under-reported especially when the crime is committed online, Assistant Chief Constable Mark Hamilton, the the National Police Chiefs' Council (NPCC) lead for hate crime, said in a statement".
Hate crime rose 29 per cent in the United Kingdom following terror attacks earlier this year, the Home Office has said, as higher levels of victim reporting drove figures up.
Provisional figures provided by the police showed jihadist attacks over the summer led to a four-month sustained increase in hate crimes, starting with Westminster attack followed by the Manchester Arena bombing and London Bridge attack on June 3.More news: Blac Chyna is suing ALL the Kardashians
More news: 46% of Americans think the media is fake
More news: Video showing high school cheerleaders yelling racial slur prompts investigation
The report included crime recorded by the police forces after the March 22 terror attack on Westminster Bridge in London, the home office said.
It added: "There was an increase in these offences from April 2016, which reached a peak in July 2016".
According to the separate CPS data, in 2016-17 a total of 14,480 hate crime prosecutions were completed across England and Wales. In 2016-17, 52 per cent of cases involved "hostility on the grounds of race, religion, sexual orientation, disability or transgender identity". "The increase in hate crime can be seen by using racially or religiously aggravated offence data".
But specially-compiled statistics released a year ago revealed a sharp rise in the number of racially or religiously aggravated offences logged by forces in the weeks following the referendum in June.
"The significant increase in uplifts since 2007 reflects the hard work of the CPS and police to present these cases in court and we aim to increase the proportion even further by 2020".