The price of goods in British shops soared by a record 3.8 per cent in the year to August after food prices accelerated by 10 per cent while non-food products rocketed as the pound continued to weaken.

Food prices have climbed from a 2.1 per cent rise in August last year to a 10 per cent increase last month, mainly because of the soaring cost of fresh produce, which the British Retail Consortium said rose by 11.9 per cent over 12 months.

Pork products, in particular, have risen substantially, as the grain used to feed pigs has become more expensive while farmers have struggled with the increasing cost of fuel.

The price of eight rashers of bacon at Tesco has risen from £1.25 last year to £2.38. Asda is now charging 30 per cent more 100g of medium pork chops at £5.79 while 175g of smoked ham has risen by 58p in a year to £2.16.

Over the same period, non-food inflation also rose strongly, from 0.1 per cent in July to 0.6 per cent last month.

Clothing and footwear showed the largest increase over a month in which the pound has fallen by 10 per cent against the dollar and plunged to a record low against the euro.

Many clothing retailers pay in dollars when sourcing goods and materials and, as sterling weakens, companies face paying higher prices for imports that they are likely to pass on to customers.

On the whole, retail inflation increased from 3.2 per cent in July to 3.8 per cent in August.

Howard Archer, chief UK and European economist at Global Insight, said: "The further sharp rise in the shop price deflator in August is not good news for the Bank of England.

"While shop prices continue to be pushed up primarily by high food prices, the Bank of England will also note that non-food prices rose up year-on-year for a third month running in August, and at an increased rate, after extended falls. This will maintain concern that retailers are increasingly trying to pass on their elevated costs."

Consumer price inflation, the Government's preferred measure, is currently at a 16-year high of 4.4 per cent, which is almost double the official 2 per cent target.

The Bank of England's Monetary Policy Committee is due to announce its decision on interest rates tomorrow when it is widely expected to keep borrowing costs at 5 per cent.

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