Poor economic figures on Monday revealed inflationary pressures are rising to levels not seen in nearly 20 years

and new data due on Tuesday are expected to show important parts of the economy are stagnating.

confidence has hit rock bottom in the housing market, with 19 in every 20 estate agents reporting falling prices in April,

the Office for National Statistics reported on Monday that the prices of manufactured goods rose 7.5 per cent in the year to April, its fastest rate since at least 1986.

Britain’s burgeoning inflation problem is also linked to the fall in sterling since November, which has left import prices in the first quarter 10.2 per cent higher in the first quarter of 2008 compared with a year earlier.