Soaring prices see inflation surge

The cost of living unexpectedly surged at its fastest rate for almost six years during April, official figures show.

The 0.5% rise in the Consumer Prices Index (CPI) to 3% is the biggest monthly jump since July 2002 and follows surging gas and electricity bills, food prices, and Budget tax hikes on alcohol and tobacco.

The gloomy figure - far higher than the 2.6% expected by City economists - brings the Bank of England's Governor Mervyn King to the brink of writing a second open letter to the Chancellor to explain the rise in inflation.

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