Official figures show that Britain's annual inflation rate remained above its 2% target last month, putting further pressure on the Bank of England to raise interest rates.
The Consumer Prices Index (CPI) rate of inflation hit 2.5% in August compared with a rate of 2.4% in July, the Office for National Statistics said. It was the fourth successive month the rate stayed above the BoE's 2% target.
The hike was caused by increases in the price of games and toys, including a big upward contribution from computer games. There were also higher costs for clothing, footwear and furniture. Householders were hit by creeping fuel and energy costs as recent bill rises by power companies British Gas and EDF Energy began to take hold.
There was also downward pressure on the rate thanks to a dip in the average price of petrol fuelled by the falling cost of crude oil, as well as a reduction in air fares.
The BoE's Monetary Policy Committee (MPC) raised the cost of borrowing to 4.75% in a shock move last month and today's announcement could increase the pressure for a further hike.
The MPC sets interests rates every month to prevent inflation spiralling above the 2% mark and is thought to be nervous about the rising inflation.
Last month Bank governor Mervyn King warned there was a 50-50 chance that inflation would strike 3% over the next six months and a good chance it would lift above 3% over the next two years.
