SOARING inflation is likely to rise further this year, the Bank of England's Governor said.

It comes as Office for National Statistics published data today showing that inflation was 4.5per cent in April, against Government targets of 2 per cent.

In a letter to Chancellor of the Exchequer George Osborne, released today, the bank's Governor Mervyn King blamed the increase in the standard rate of VAT in January to 20per cent, higher energy prices and increases in import prices.

Mr King wrote: "Although the impact on inflation of these factors is difficult to quantify with precision, it is likely that had they not occurred, inflation would have been substantially lower and probably below the target."

He added: "Continuing volatility in energy and commodity prices makes it difficult to be sure when inflation will return to the target.

"Inflation is likely to rise further over the next few months, as increases in the price of energy are likely to raise petrol prices and make it more likely that there will be substantial increases in utility bills later in the year."

However Mr King said the Bank believed inflation would fall back through 2012 and into 2013 as the impetus from the three factors gradually diminished.