Shop price inflation has hit a new record high, fuelling concerns that the Bank of England’s action to address the crisis is falling short.

Prices were up 9pc in the year to May compared to 8.8pc in the year to the end of April, according to the British Retail Consortium NielsenIQ Shop Price Index. 

Sharp rises in the cost of chocolate and coffee helped push shop price inflation to its highest level in at least 18 years.

The figures come after shock inflation figures last week showed prices continue to rise faster than economists had expected.

City analysts tore up their forecasts for interest rates last week on the back of the shock figures and now believe the Bank of England will be forced to take rates to 5.5pc to curb inflation.

The BRC figures show food inflation overall slowed slightly to 15.4pc in May, down from 15.7pc a month earlier.