The biggest jump in food prices since 1980 pushed British inflation back into double digits last month, matching a 40-year high hit in July in a new blow for households grappling with a cost-of-living crisis.

The Office for National Statistics said the Consumer Price Index, CPI, increased by 10.1 per cent in annual terms in September.

The pound slipped below $1.13 on the news and was last down 0.2 per cent on the day.

Food and non-alcoholic beverages prices were the biggest driver of inflation in September as they rose by 14.5 per cent, the biggest jump since April 1980 according to historical modelled estimates of the CPI.

The figures hammered home the difficult environment for British households, especially those on the lowest incomes who face new uncertainty about the extent of financial support available to them after recent government U-turns.

Government support for household and business energy bills is also in doubt after new finance minister Jeremy Hunt limited the scope of the programme to six months, from two years previously.