The annual rate of inflation jumped to 2.1 per cent in October, compared with 1.8 per cent in September, according to the Consumer Price Index (CPI).

The increase was largely a result of rising petrol prices, but there was also a substantial upward movement in the price of food, particularly meat, as well as strawberries and bananas. This contributed to a rise in the Retail Price Index where inflation rose to 4.2 per cent, against 3.9 per cent in September.

Capital Economics chief European economist Jonathan Loynes said: “Retail margins will have to be squeezed tightly to prevent core goods inflation from edging higher over the coming months.”

He added that on the basis of continuing prices rises, “interest rates may not fall for a while yet”.