The British annual inflation surged to a new 40-year high in June on rising motor fuel and food prices, official data showed on Wednesday, adding to a cost-of-living crisis.
The Consumer Prices Index CPI jumped to 9.4 per cent last month, from 9.1 per cent in May, the Office for National Statistics said in a statement.
Analysts said the Bank of England could raise interest rates by 50 basis points, or half a percentage point, at its next policy meeting in August and put pressure on the Bank of England to raise interest rates by as much as 50 basis points, or half a percentage point.
The central bank expects British inflation to surpass double figures this year.
In the UK, we saw another eye-popping CPI reading, and the pressure is on the BoE to do what it takes before it is too late to control inflation, said Naem Aslam, chief market analyst at Avatrade.
Inflation has soared to the highest level in decades in many countries, due to the war in Ukraine and the easing of Covid restrictions.
It has forced central banks to raise interest rates, risking the possibility of a recession as higher borrowing costs hurt businesses and consumers.
The Bank of England has increased its key interest rate five times since December, lifting it to 1.25 per cent from a record low of 0.1 per cent.
The BoE has not increased its rates by more than 0.25 percentage points each time.
On Tuesday, BoE governor Andrew Bailey said that a 50 basis-point increase will be one of the options on the table when we meet Separate data this week shows that soaring UK inflation has caused the value of British wages to fall at a record pace.
Aircraft refuellers at London's Heathrow Airport will strike for three days later this month, while telecoms giant BT is facing its first staff walkout since 1987.