Analysis: Rate has driven through 10% mark sooner than Bank of England and financial markets expected
- UK inflation hits 10.1%, driven by soaring food and fuel prices
- Business live updates: UK inflation rises to new 40-year high
The annual inflation rate has burst through the 10% barrier sooner than the financial markets and the Bank of England expected but the sharp jump in the cost of living last month is not really that much of a shock.
Consistently over the past year the figure has come in higher than forecast but it will not merely be the leap in the headline number for the consumer prices index (CPI) – up from 9.4% in June – that will be a cause for concern.
