The increased cost of petrol during October was one of a number of factors that forced inflation above the Bank of England's 2% target, it has been revealed.

Consumer Prices Index inflation increased by 0.3% to 2.1% last month, the biggest month-on-month jump since March, according to the Office for National Statistics.

The figure, which surprised economists who had forecast that CPI would be 1.9%, means that inflation is back above the Bank's benchmark for the first time since June.

Experts now believe that the stronger-than-anticipated figures will dash borrowers' hopes for an interest rate cut this year, as the Bank continues to battle against inflation amid increasing signs that the UK economy is slowing down.

The price of petrol rose by an average of 2.7p a litre to 97.4p in October after the Government increased fuel duties and oil prices hit record levels.

Rising air fares during the month also contributed to the jump, as did increased food costs.

Supermarkets raised the price of meat products, while consumers also found themselves paying more for items such as strawberries and bananas.

As a result, petrol and food costs more than offset the deflationary effect of lower gas and electricity bills, which economists had hoped would keep CPI below the 2% threshold.

The figures illustrate the challenge faced by the Bank's Monetary Policy Committee, which voted to hold rates at 5.75% last week after data suggested that five hikes in the past 15 months are affecting the housing market and hitting retail spending.

Since the beginning of November, oil prices have surged further still to new records - bringing the average cost of petrol above the £1 a litre mark for the first time - which is likely to add to the difficulties faced by the MPC.

Capital Economics's Jonathan Loynes said: "With further rises in petrol and food prices likely, inflation looks set to move further above the MPC's 2% target and could stay there for some time. Interest rates may not fall for a while yet."

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