Prices for food and drink are rising at their fastest pace in more than two years despite last month's surprise fall in inflation, according to the Office for National Statistics

Butter is one of the foods that have risen the most this month, up 26.4pc on this time last year. 

The soaring cost of staples – such as bread, meat, fish and juices – will add to concerns about household finances even though the headline rate of inflation fell from 4.5pc in May to 4.2pc in June. The reduction in the consumer prices index (CPI) was largely due to the early summer sales, with prices for games, toys and audio-visual equipment all falling.

"Price discounting in June this year influenced the contribution from each of these classes," the ONS said.

With prices for non-discretionary items such as food and energy rising, cash-strapped consumers appear to be putting pressure on retailers for cuts elsewhere.

The fall in CPI came against expectations for an unchanged figure of 4.5pc. It was matched by a similar decline from 5.2pc to 5pc in the retail prices index often used for wage settlements, reinforcing opinions that the Bank of England will leave interest rates at their record low of 0.5pc until next year.

The data pushed the "interest rate debate in the direction of the doves", Mr Loynes said. "[The] figures add support to the growing view that UK monetary policy is more likely to be loosened than tightened over the next year or so."

According to the ONS, prices for bread and cereals have risen 8.5pc in the past year, 7.2pc for meat and 12.2pc for fish. Vegetables are 5.4pc more expensive, while sugar and confectionary cost 8.2pc more. Coffee and tea prices have risen 9.3pc, and soft drinks and juices 10.6pc.

Overall, the inflation rate for food and non-alcoholic beverages was 6.9pc – the highest since May 2009. James Knightley, economist at ING Financial Markets, warned: "Food prices are set to rise further given the lagged increases in raw food commodity prices."

Despite the surprise drop in inflation, economists still reckon CPI is likely to breach 5pc in the autumn. "It seems inevitable that inflation will spike up around August/September as higher utility bills kick in," Howard Archer at IHS Global Insight said. "Both British Gas and Scottish Power have announced hefty increases in their charges for gas and electricity from August and other utility providers seem certain to announce similar hefty increases."

Household utility bills are expected to rise by 15pc-20pc. Mr Knightley added: "As a result, we still look for CPI to hit 5.5pc within the next three to six months."