More pain to come for vulnerable households despite hopes UK inflation has peaked

Highest rate for 41 years leaves chancellor Jeremy Hunt with difficult budget choices

• UK inflation jumps to 11.1% on back of energy and food price rises
• Business updates: poorest households hit hardest by inflation

Britain's economy is facing a toxic mix of inflation and recession, amid the worst emergency for living standards in a generation.

Despite the cap on energy bills put in place by the government last month, households came under renewed pressure as inflation rose to the highest rate since October 1981. Even with the limit for average bills at 2,500 for a typical household, headline inflation topped 11% for the first time, reflecting the surge in energy bills from a year ago and the rocketing cost of a weekly shop.