Rising food prices sent the UK's annual inflation rate surging to 3% last month in the sharpest increase in the cost of living in almost six years, the government said today.

Data from the Office for National Statistics revealed that the government's preferred measure of inflation - the Consumer Prices Index - was up by 3% in the year to April compared to 2.5% in the 12 months to March.

The scale of the increase came as a shock to the City and will severely dent hopes of an early cut in interest rates from the Bank of England to boost growth. ... Read full article