The Bank of England says price rises already seen in food and fuel will spread to other goods later this year.
In a monthly report of business conditions, the Bank said the cost of manufactured goods would also rise.
Companies which made bets to mitigate against last year's drop in sterling will soon see those bets expire, increasing their costs, it said.
However, more exports and "resilient consumer demand" had encouraged more investment, the report said.
"So far, the main effect on consumer prices had been higher food and fuel prices," said the central bank.
"But a wider range of goods prices were expected to be affected over the coming year, causing inflation to rise further."
Rising air fares and food prices helped to push up UK inflation to its highest rate since July 2014 in December.
