Rocketing food and fuel prices could send the inflation rate to 5 per cent by the autumn, economists warned after a shock report yesterday threatened to trigger a rise in interest rates. Record monthly leaps in food and transport costs pushed the consumer prices index (CPI) to 3.7 per cent in December, the Office for National Statistics said. City traders are now anticipating as many as three separate quarter-point interest rate increases by the Bank of England this year alone. That would take the official interest rate from 0.5 per cent to 1.25 per cent, lifting payments on an average £121,500 mortgage from £659 a month to £711. Inflation is set to head yet higher in 2011 thanks to this month’s VAT increase and rampant growth in Asia, which is driving up commodity prices across the globe. Michael Saunders

President lands in Washington for crucial three-day visit

The former Chief Inspector of Prisons will cause controversy tomorrow when he calls for the number of under-18s in custody to be cut by two thirds as part of Kenneth Clarke’s “rehabilitation revolution”. Lord Ramsbotham will call on the Justice Secretary to scrap all young