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UK inflation accelerated at the fastest pace in 40 years in July, numbers on Wednesday showed, hitting double-digits and heaping more pressure on the Bank of England.
The consumer price index surged 10.1% on an annual basis in July, topping FXStreet-cited market consensus of 9.8% and quickening from 9.4% in June.
According to the Office for National Statistics, it was a fresh high for the annual inflation rate in the current series, which began in January 1997. Modelling would suggest the last time inflation was this red-hot was in 1982, 40 years ago.
A year earlier, the inflation rate was just 2.0% - matching the Bank of England's target. However, there has been an acceleration in annual inflation every month since last October.
On a monthly basis, consumer prices rose 0.6% in July, slowing from growth of 0.8% in June. Still, this had been expected by analysts to slow further, to 0.4%.
The figures come after numbers on Tuesday put the jobs market and wage growth under the spotlight.
On an inflation-adjusted basis, regular UK wages fell 3.0% year-on-year in the three months to June, according to the ONS. July's red-hot inflation figure is likely to make that pay squeeze even tighter.
The latest inflation readings also put the BoE in focus once again. The BoE lifted rates by 50 basis points earlier in August and with inflation continuing to run wild, another chunky hike is possible at its September meeting.
Meanwhile, annual factory gate inflation slowed.
Producer input prices jumped 23% annually in July, easing from June's record high of 24%.
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