Inflation rose to 2.7% in August, data released by the Office for National Statistics has revealed.

Experts had expected a Consumer Prices Index rate of 2.4%.

Wages are still rising more than inflation despite it climbing to the highest level in six months.

Rising prices for recreational goods, transport and clothing drove the rise.

Mike Hardie, head of inflation at the ONS, said: “Consumers paid more for theatre shows, sea fares and new season autumn clothing last month.

"However, mobile phone charges and furniture and household goods had a downward effect on inflation."

Ben Brettell, senior economist at Hargreaves Lansdown, said: "The numbers reinforce expectations that policymakers will gently lift interest rates over the next couple of years.

"The figures won’t come as welcome news to the Bank of England though – they’ll be desperate to leave policy unchanged until we get some clarity over Brexit and won’t want to be forced into a rate rise by accelerating prices.

"A rise to 1% is tentatively priced in for around May next year, though clearly a disorderly Brexit would force a dramatic rethink."