Price rises have been sharper than expected - and inflation is running at over two times the government's target.
Inflation continues to rise rapidly, new government statistics show.
The new monthly Consumer Price Index (CPI) stands at 4.4 percent for July, up 0.6 percent over June's figure. This is also a full 2.4 percent above the Bank of England's own inflation target - and is also above analysts' expectations that it would rise to 4.2 percent for the month.
Increasing inflation means that interest rate cuts are unlikely over the near future, as reductions generally have the effect of boosting prices still further. In turn, this spells bad news for mortgage customers, who would benefit from a drop in the Bank's base rate because their loan repayments would be made cheaper as a result.
Big rises in food and fuel, with prices at the petrol pump hovering around 120p per litre, have been blamed for the inflationary trend. Elsewhere, the Retail Price Index (RPI) also rose over the month, going from 4.6 percent to five percent.
Included in this total was a 13.7 percent rise in food prices, with bacon, pork and chicken becoming rapidly more expensive.
Global Insight economist Howard Archer said: "The sharp spike up in inflation in July increases the risk that the Bank of England will raise interest rates despite the fact that the economy seems more likely than not to contract over the second half of the year."
