The fourth consecutive nasty surprise on prices pushed UK inflation to 4.4 per cent in July – its highest since the early 1990s and more than double the government’s target – as economists predicted a further rise to 5 per cent in the autumn.

Inflation was last higher in April 1992 when sterling was still in the European exchange rate mechanism, the economy was just emerging from the early 1990s recession and John Major unexpectedly won a fourth Conservative term.