Prices are continuing to rise at their fastest rate for more than 40 years, with UK inflation passing double digits for the first time since 1982.
Inflation hit 10.1% in the 12 months to July, up from 9.4% in June, the Office for National Statistics (ONS) said.
The Bank of England has said inflation - the rate at which prices rise - could peak at more than 13%.
The figure was higher than economists expected, with rising food prices making the biggest contribution.
Energy, petrol and diesel costs are also contributing.
Soaring living costs are eating into household budgets, with prices rising faster than wages.