UK interest rates look certain to rise again – possibly by half a percentage point by autumn – after a shock jump in inflation which also pushed sterling above $2 for the first time in 15 years.

Video: UK Daily View

Chris Giles, economics editor, on the pound hitting $2 for first time since 1992

Markets were convinced of the inevitability of a 0.5 point increase by the end of the year, while a Reuters survey on Tuesday showed 49 out of 51 economists polled thought rates would rise by a quarter of a percentage point to 5.5 per cent next month.