The underlying rate of British inflation rose by 0.5 per cent last month to 2 per cent, higher than market expectations.
Most analysts had predicted a rise of just 0.3 per cent to 1.8 per cent. The headline rate of inflation, which includes mortgage interest payments, rose 0.5 per cent to 1.5 per cent.
Despite the rise, the underlying rate, which strips out mortgage payments, is still comfortably below the Chancellor of the Exchequer Mr Gordon Brown's 2.5 per cent target.
Last month's level of 1.5 per cent was the lowest since records began in 1975. The data from the Office for National Statistics (ONS) casts doubt over whether the Bank of England will now have room to sanction another interest rate cut to lift the faltering economic recovery.
The ONS says the inflation rise largely stemmed from one-off base effects, with the fall in seasonal food prices much less pronounced than a year ago.
Clothing, footwear and furniture prices also contributed to the rise, with the impact of summer sales much less than last year. PA
