Inflation in the UK has reached 3.3%, the fastest pace in at least a decade, with Bank of England governor Mervyn King predicting a high of 4% by the year end on the back of unanticipated increases in the price of food, fuel, gas and electricity.

The latest inflation figure, published day by the Office for National Statistics, is 1.3% above the Government target of 2%, and is up 1.2% this year.