Figures released from the Office for National Statistics show CPI inflation at 5.2 per cent and RPI infation at 5.6 per cent.

Firms cited the effect of January’s VAT rise as a reason for rising inflation but were split over what effect it would have next year.

Ian McCafferty, chief economic adviser at the Confederation of British Industry, said: “We hope this high rate of inflation will be short-lived. We expect inflation to ease back significantly through 2012 as the upward pressure exerted by this year’s VAT rise and commodity price increases fades away.”

However asset management firm Schroders was more doubtful.

A spokesperson for the firm said: “We wonder how far the banks can push before it loses its credibility as an inflation fighter. The Bank has consistently pointed to the increase in VAT as a temporary factor that is distorting the true rate of inflation, however the number show that when the ONS excludes the impact of taxes, CPI inflation is still running at 3.7 per cent, well above the Bank’s target.”

It predicted that the Bank would introduce even more quantitative easing in February 2012.

Kames Capital also predicted that inflation would remain high into next year.

Stephen Jones, manager of the Kames Capital inflation linked fund, said: “There is nothing good in this release, inflation data across the board hasn’t been this poor for two decades. Even when inflation starts to fall in 2012 it will be doing so from such an unexpectedly high level it will remain above acceptable and targeted level long into 2012.”