Surging food and energy prices create record inflation rate
Updated on 12 August 2008
Rising food and energy prices push the official rate of inflation to its highest level since records began more than a decade ago.
The Consumer Prices Index rose by 0.6 per cent, the biggest monthly jump since 1997, to hit 4.4 per cent in July.
The rise puts pressure on the Bank of England to increase interest rates, but it has been reluctant to do so because of the economic downturn.
The Retail Prices Index also went up, with implications for wage settlements.
The Trades Union Congress said it was vital pay kept pace with inflation to protect people's living standards.
