Homeowners may face three more interest rate hikes by the summer, adding hundreds of pounds a year to mortgage bills, experts warn.
Financial markets suggest that rates will surge to five per cent, up from 4.25 per cent as the Bank of England attempts to control increasingly mounting prices.
It follows the release of a report last week which destroyed hopes of an end to double-digit inflation.
The Office for National Statistics said inflation fell by less than expected to 10.1 per cent last month, partly due to a huge rise in food prices.
Financial markets suggest that rates will surge to five per cent, up from 4.25 per cent
PA
Economists had expected the consumer price index rate of inflation to fall to 9.8 per cent from 10.4 per cent in February.
The Bank of England (BoE) predicted in February that inflation would have been nudging nine per cent by now.
Elsewhere, eurozone figures showed inflation at 6.9 per cent while it has fallen to just five per cent in the US.
Over recent months, it was expected that the BoE was due to pause rises amid hopes inflation was set to fall.
However, more hikes are likely with rates set to increase to 4.5 per cent next month and a further rise to 4.75 per cent in June.
Traders also implied that there is more than 50 per cent chance of a further increase in rates to five per cent in August.
According to trade body UK Finance, this would add £71 a month to a typical tracker home loan or £45 a month for those on a standard variable rate (SVR).
"If you're holding off from switching or fixing, it may be a good idea to seriously consider what you're waiting for," Sarah Coles, head of personal finance at Hargreaves Lansdown told This is Money.
Traders suggest that there is more than 50 per cent chance of a further increase in rates to five per cent in August
PA
Sue Davies, head of food policy at consumer group Which?, added: "These figures reflect Which?'s inflation tracker research, which shows that prices of everyday food essentials such as porridge oats, cheddar and bread have rocketed by up to 80 per cent in the last year.
"Millions of people are struggling to put food on the table, with some parents telling us they are skipping meals just to make sure their children have something to eat.
"Supermarkets need to step up and do more to help their customers.
"Retailers should make sure their pricing is clear so people can easily work out which items offer value for money and ensure everyone has access to affordable, healthy food - particularly in areas where people most need support."
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