Consumer spending drove British economic growth to its fastest rate in two years in the second quarter.
The figures provide further evidence that the UK economy is growing strongly and mean finance minister Gordon Brown is almost certain to beat his budget forecast for growth of between 2 and 2.5 per cent for the full year.
The Office for National Statistics said today that Britain's economy grew 0.8 per cent on the quarter and 2.6 per cent on the year in the three months to June - unrevised from an initial estimate last month.
The Bank of England cited faster growth and rising inflation when it raised interest rates earlier this month for the first time in two years.
Today's data, which contained more detail than the initial estimate, confirmed the existence of both. Growth accelerated at its fastest rate since 2004 and the implied deflator - a key measure of price pressures - rose at its quickest in 15 years.
UK interest rate futures, already pricing in a quarter-point rise to 5 per cent before the end of the year, showed little reaction to the data.
Strength in the second quarter was noted particularly in the services sector, with spending by households, businesses and the government rising sharply.
Consumer spending jumped by 1 per cent on the quarter as the World Cup soccer tournament boosted demand for flat screen TVs and food and drink.
But analysts doubted this rate of growth could be sustained.