INFLATION has jumped to a near two-year high as the rising cost of clothes, restaurants and hotels pushed up the cost of living.

The Consumer Price Index inflation hit a higher-than-expected 1.0 per cent in September - the same level as November 2014 - rising from 0.6 per cent in August.

Economists had been pencilling an increase of 0.9 per cent.

The Office for National Statistics said there was no explicit evidence that sterling’s slump following the Brexit vote had pushed up prices of consumer goods.

The value of the pound has fallen nearly 20 per cent against the US dollar since Britain voted to leave the European Union.

The Retail Prices Index - a separate measure of inflation, which includes housing costs - rose to two per cent in September, up from 1.8 per cent in August.

Mike Prestwood, the head of inflation at the ONS, said: “CPI inflation has risen to its highest for nearly two years, though it remains low by historic standards.

“The prices paid by manufacturers for raw materials were unchanged over the month and there is no explicit evidence the lower pound is pushing up the prices of everyday consumer goods.”

The main upward pressure on CPI came from a jump in clothing and footwear price tags - especially women’s clothes - with garments rising six per cent between August and September, compared to a 3.3 per cent rise over the same period last year.

Overall clothing prices rose by 5.5 per cent month-on-month in September.

The ONS said the relatively large increase in clothing prices was in line with seasonal trends and not triggered by the drop in the value of the pound following the EU referendum result.

It added that firms had measures in place to protect against short-term changes in the exchange rate.

The cost of living was also impacted by price rises at restaurants and hotels, up 0.7 per cent between August and September compared to 0.2 per cent a year ago.

The cost of an overnight stay in a hotel rose month-on-month in contrast to a fall last year.

Petrol prices climbed by 1.2 pence per litre month-on-month to 111.2 pence, while diesel prices increased by 1.5 pence per litre to 113.3 pence over the period.

However, food prices dropped 0.3 per cent between August and September, compared with a 0.1 per cent rise last year.

Prices at supermarket check-outs have continued to fall as Britain’s Big Four grocers remain engaged in a price war following the rise of German discounters Aldi and Lidl.

Food prices came into sharp focus last week when Tesco and Unilever became locked in a Mexican stand-off over a price hike.

Britain’s biggest supermarket was left grappling with a shortage of store cupboard staples - including Marmite, Pot Noodle and Persil - after reportedly refusing to bow to Unilever’s demands for a 10 per cent price rise following the collapse of sterling.

The Bank of England says it is willing to allow inflation to run a bit higher next year than its two per cent target if it safeguarded jobs and boosted economic growth.