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According to the Office for National Statistics, producer price inflation exceeded previous forecasts and surged to 10.2 per cent during the year to July.
The figures represent the sharpest annual increase since the series began 12 years ago, reports the Guardian.
A rise in output prices also indicated the likely onset of further inflationary pressures in the coming months.
Tomorrow (August 13th), the Bank of England is due to publish its quarterly inflation report. Last month, inflation hit 3.8 per cent, significantly higher than the bank's two per cent target.
HBOS analyst Mark Miller commented: "The outlook remains fairly poor. The weakness of the eurozone economy is a worry here and may compromise the trade position going forward."
The Press Assocation reports that draft business proposals submitted to utilities regulator Ofwat suggest households could soon be faced with an above-inflation rise in water bills.
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