CPI rate rises to 10.1 in July from 9.4 in June
Inflation last higher in February 1982
Economists expect BoE to raise rates again next month
Signs of some easing of price pressures for factories

LONDON, Aug 17 Reuters British consumer price inflation jumped to 10.1 in July, its highest since February 1982, up from an annual rate of 9.4 in June, intensifying the squeeze on households, official figures showed on Wednesday.

The increase was above all economists39; forecasts in a Reuters poll for inflation to rise to 9.8 in July, and will do nothing to ease the Bank of England39;s concerns that price pressures may become entrenched.

Despite warning that a recession was likely, the BoE earlier this month raised its key interest rate by 0.5 to 1.75 its first halfpoint rise since 1995.It forecast inflation would peak at 13.3 in October, when regulated household energy prices are next due to rise. 

Every upward inflation surprise tightens the bind the BoE finds itself in, with mounting inflation pressure combined with growing recessionary headwinds, said Luke Bartholomew, senior economist at asset management at asset manager abrdn.

He, like most economists in a Reuters poll earlier this week, expect the BoE to raise interest rates by a further half point to 2.25 at its next meeting in September. 

Twoyear British government bond yields which are sensitive to interest rate expectations surged to their highest since June 21, when they had struck a 13year high….