British inflation remained steady at 2.4 per cent in June, disappointing expectations it would fall back from the two-year high it hit in May, official data have shown.
The news will further dent lingering hopes the Bank of England will cut interest rates again any time soon, since the inflation rate remains close to its government-set target of 2.5 per cent.
"These figures are clearly disappointing as they are a touch above forecast," said Mr Philip Shaw, economist at Investec bank in London.
Interest rates in Britain are at 5.25 per cent, with the Bank of England having cut them three times by a quarter point in the spring to ward off the recessionary impact of a slowing global economy.
A sharp surge in prices for seasonal foods such as potatoes in May was largely responsible for the jump in inflation in that month.
There was also an upward effect in June from clothing and footwear due to fewer seasonal sales this year than last.