British households are under the cosh as inflation picked up again to hit 2.9pc last month, its highest rate in four years, as the weak pound pushes up the price of imports.

That is an increase from 2.7pc in the 12 months to April, and means prices are soaring even as wage growth slows down - regular pay is only thought to have risen by 2pc in the year to April.

Food, clothing and toys costs all pushed up the annual rate as every major category of goods measured by the Office for National Statistics showed rising prices, except for transport costs. Even the fall in fuel costs is likely to be reversed as prices have edged up again in June.