Soaring oil prices caused inflation in the United Kingdom to rise at its fastest rate in eight years last month, according to official figures.
The Consumer Prices Index (CPI) moved up to 2.3 per cent in July from 2 per cent the previous month - the highest level since records began in January 1997.
Inflation was driven by higher petrol prices, reflecting the recent rise in the cost of crude oil to record levels, the Office for National Statistics said.
The increase was stronger than economists had predicted and will make another reduction in interest rates look less likely.
In its quarterly Inflation Report last week, the Bank of England predicted the CPI would rise above the British government's 2 per cent target in the short term. The bank said it would then ease off before once again passing this level at the end of the two-year forecast period.
The new data showed higher petrol prices added 0.13 per cent to the annual rate of CPI inflation. A sharper rise in air and sea fares also had an upward effect.
The headline rate of Retail Price Index inflation, which includes mortgage interest payments, was unchanged at 2.9 per cent in July; the underlying rate rose to 2.4 per cent from 2.2 per cent.