The UK’s rate of inflation eased back into single digits in August on the back of lower petrol prices, providing some relief to households as they go into winter.

The headline consumer price index was 9.9 per cent higher than a year earlier during the month, down from a 40-year high of 10.1 per cent in July.

Economists now expect the inflation rate to hover around the 10 per cent level through the autumn rather than rising to more than 15 per cent, after prime minister Liz Truss’s announcement that the government would protect households from an 80 per cent increase in gas prices in October.

But the injection of possibly around £150bn into the economy to support households and businesses with subsidies for gas and electricity is likely to keep inflation higher for longer, raising pressure on the Bank of England to raise interest rates significantly further.

Economists expect a 0.5 percentage point increase when the bank’s Monetary Policy Committee meets next week, with its official interest rate expected to rise from 1.75 per cent now to at least 3 per cent by the end of the year.