British consumer price inflation jumped to 10.1 per cent in July, its highest since February 1982, intensifying the squeeze on households.
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The increase from an annual rate of 9.4 per cent in June was above economists' forecasts of a rise to 9.8 per cent, and will do nothing to ease the Bank of England's concerns that price pressures may become entrenched.
Despite warning that a recession was likely, the BoE earlier this month raised its key interest rate by 0.5 per cent to 1.75 per cent - its first half-point rise since 1995.
It forecast inflation would peak at 13.3 per cent in October, when regulated household energy prices are next due to rise.
Luke Bartholomew, senior economist at asset manager abrdn, expects the BoE to raise interest rates by a further half point to 2.25 per cent at its next meeting in September.
"Every upward inflation surprise tightens the bind the BoE finds itself in, with mounting inflation pressure combined with growing recessionary headwinds," he said.
Britain is not alone in facing soaring price growth but there are signs it will continue to struggle with rising inflation for longer than other countries.
Many economists believe US inflation has peaked after it dropped to 8.5 per cent in July from a four-decade high of 9.1 per cent in June.
British finance minister Nadhim Zahawi said getting inflation under control was his top priority.
Surging energy prices in Europe in the wake of Russia's invasion of Ukraine are the main driver of inflation and are likely to tip Britain into a lengthy, if shallow, recession later this year, according to the BoE.
The current typical annual household energy bill is just under STG2000 ($A3445), almost double its level a year ago, and is likely to rise above STG4000 ($A6889) in January, according to industry analysts Cornwall Insight.
Australian Associated Press