UK inflation surges to 16-year high

British headline inflation rose to 3.8% in the year to June, its highest level since 1992.

The measure was up by half a percentage point on the May data and was a fifth above analysts' predictions of 3.6%.

"The figure is even higher than we expected," said Michael Saunders, the head of European economics at Citi, a bank. "CPI food price inflation jumped to a new record high of 10.6% in the year to June from 8.7%, the highest since data began in 1997."

"Optimists will try to draw comfort from t