In July, headline consumer price inflation in the UK rose at an annual rate of 3.8 per cent, above market expectations of a 3.7 per cent rise and stronger than June’s 3.6 per cent increase. It was in line with BoE expectations.

British inflation looks set to hit 4% next month, double the Bank of England's target and a level likely to add to nervousness at the central bank about the risk of price growth getting stuck at a stubbornly high rate.