The rate of price rises remained at 3.8% in August, the same as in July, according to data from the Office for National Statistics (ONS).
Money blog: Here’s what inflation figure means for you
Food and non-alcoholic drinks price rises, however, accelerated from 4.9% to 5.1%, far higher than the headline rate and other measures of inflation.
It’s the first time such a high has been reached in 18 months.
“Small increases” were seen in vegetables, cheeses and fish, the ONS said.
Prices are expected to continue rising, with the Bank of England forecasting the rate will hit 4% in September.
Such a high is double the central bank’s 2% target, meaning interest rates – and the cost of borrowing as a result – could remain higher for longer.
Why?
Latest headline data was unchanged as airfares rose less sharply in August this year, compared to last, though this was offset by hotel prices falling less sharply and more expensive petrol.
The rise in food inflation follows the hottest UK spring and summer on record, which impacted crop growth and animal feeding, and resulted in one of its worst harvests in decades.
Behind the headline figure
Other measures of inflation slowed.
Core inflation, which strips out volatile food and energy prices and is closely watched by the rate-setters at the Bank of England, fell back to 3.6% from 3.8% last month.
Similarly, services inflation, which tracks prices in the biggest part of the UK economy, dropped back to 4.7% from 5% in July.
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