The underlying rate of inflation jumped to its highest level for more than two years last month as the cost of motoring and seasonal foods increased.
The Office for National Statistics said August's underlying rate, which excludes mortgage interest payments, was up 0.4 per cent to 2.6 per cent - its highest level since March 1999.
The increase is significantly ahead of analysts' expectations and puts the inflation rate above Chancellor Gordon Brown's target of 2.5 per cent.
The Bank of England uses the underlying inflation level to set interest rates and the sharp jump recorded in August may fuel concern that a further cut in the cost of borrowing could lead to more inflationary pressure in the economy.
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