Inflation accelerated in July to 10.1 per cent, the fastest rate since February 1982, official figures have revealed.
The higher than expected jump in the cost of living comes the day after the Office for National Statistics (ONS) said wages were rising at just 4.7 per cent.
Living standards are now falling more quickly than at any time since detailed records began in 2001.
The ONS said on Wednesday that the Consumer Prices Index (CPI) – the benchmark measure of inflation – rose from 9.4 per cent in June.
