The prospect of inflation hitting 12% this autumn is looming larger after dearer fuel and food pushed the official measure of the cost of living to a fresh 40-year high.
A one-month increase in petrol prices not seen since at least the late 1980s, coupled with across the board increases in food staples such as eggs, milk, cheese and vegetables sent Britain’s annual inflation rate up from 9.1% to 9.4% in June.
