Record increases in the price of food have been blamed for inflation hitting a two-year high.
Food prices rose by a record 1.6% in the past two months, according to figures from the Office for National Statistics.
That helped push the Consumer Price Index, which measures annual inflation across a range of consumer staples, to 3.3% last month – well above the official target of 2%.
The Bank of England warned that prices would continue to rise well into the new year, further spurred by the imminent rise in VAT to 20%.
Single-price chains squeeze suppliers as VAT hike looms (13 December 2010)
High street suffers slow start to Christmas (7 December 2010)
Consumers remain wary over spending (27 November 2010)
Carlsberg: cost hikes will push up price of lager (13 November 2010)