The Office for National Statistics has today (August 17) released the latest inflation figures and they are at the highest for 40 years.

Inflation is now at 10. 1 per cent, more than five times the Bank of England's 2% target.

The double digit increase is the biggest since 1982 but many analysts are warning it will only climb higher, possibly to 13 per cent.

The biggest impacts on the overall inflation figures were prices rises on bread and cereals, and milk, cheese and eggs.

It is not all gloom : Second-hand car price inflation fell for the fourth month in a row from +15.2% to +8.6%