Soaring food and petrol prices pushed inflation to a new record of 3.8 per cent in June from 3.3 per cent in May, official figures show.

It is the highest rate since the current system was introduced in 1997 and above the 3.6 per cent most economists had predicted - well above the Government's target.

According to the Office for National Statistics (ONS), June saw large increases in beef and pork sausage prices, as well as big hikes in the cost of rice, white bread, biscuits and frozen pizza.

Milk rose by around 10p for four pints and 4p for two pints across a range of supermarkets.

Meanwhile, average petrol prices rose 5.3p a litre during the month to 117.6p thanks to surging oil prices, outstripping last year's smaller increases and adding to motorists' forecourt misery. Diesel also rose 7.3p last month compared with just 0.6p 12 months earlier.

Gas and electricity bills - which were unchanged in June but fell a year earlier - added to the inflation pressure. And there was no respite for those looking to escape the gloom with a holiday as package holiday costs rose this year.

The prices of computer games and DVDs also rose during the month, according to the ONS, despite falling clothing and footwear prices as desperate retailers sought to tempt in shoppers with even bigger price cuts.

The big increases in food, petrol and gas and electricity were partially offset by a lower increase in mortgage payments than last year and a downward impact from sliding property prices.

Meanwhile, the underlying rate of Retail Prices Index inflation rose to 4.8 per cent in June from 4.4 per cent in May, the ONS said.

The ONS added that the headline rate of RPI inflation, which includes mortgage interest payments, rose to 4.6 per cent in June from 4.3 per cent the previous month meaning it will be even more difficult for Bank of England policy-makers to bring down rates.

But, there was more bad news on the fight against inflation after factory gate prices posted their first double-digit annual percentage rise for more than 20 years.

Output prices - a measure of how much manufacturers charge for their goods - rose 10 per cent in the year to June, according to the ONS. It is the highest reading since records began in 1986 and compares to a reading of 2.5 per cent this time last year.

More than half June's rise was attributed to soaring food and petrol costs - up 11.8 per cent and 34.2 per cent respectively over the year and both record highs in the series.

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