Official figures show that British inflation shot up in July to more than twice the Bank of England's 2% target as food prices rocketed. The data are likely to dampen expectations of any interest rate cuts soon.
The Office for National Statistics said consumer prices were unchanged last month, which took the annual rate of inflation up to 4.4% from 3.8% in June. That was the both the biggest jump and the highest rate since the series began in 1997. Analysts had predicted a rise to 4.1%.
Bank of England policymakers had seen these figures at their rate-setting meeting last week and their new quarterly forecasts due on Wednesday are almost certain to show a much higher near-term inflation outlook.
The main culprit in July was soaring food prices, up a record 13.7% on the year as the cost of meat rose sharply. Bread and cereal prices also shot up. Higher petrol prices also played their part in lifting inflation as the figures were collected before much of the recent sharp slide in oil prices.
