Britain's households could be spared a further blow from higher inflation because Theresa May’s snap election has pushed up the pound, limiting the chance of more rises in the cost of imports.

Economists believe that a bigger Conservative majority could strengthen sterling – or at least stop it falling further – protecting living standards and so holding back one of the main threats to the UK economy this year.

The pound rose by around 1pc on the day the general election was announced, pushing it to almost €1.20 against the euro and $1.28 against the dollar.