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The warning came as Opec countries met last week to discuss whether to increase production.

Although the price of oil had eased at the start of last week after the previous Friday's record-breaking high, economists around the world have tipped the price to increase or stay at similar levels for the long term.

While acknowledging prices were likely to climb further, Ali al-Naimi, oil and natural resources minister for Saudi Arabia, said the rise was unrelated to market fundamentals, blaming factors beyond, such as speculation and international political tension.

Michael Dicks, head of research and investment strategy at Barclays Wealth, agreed fundamentals did not solely justify the high oil price, and there was an element of speculation buoying the market.

However, he also warned "with inventories low, it clear that high oil prices are here to stay."

The result of this, he said, could knock 25bps of US growth next year "if it proves to be permanent", and add 44bps to inflation.

"If further oil price rises were to occur, the effects would be more severe," he said. "Whatever happens, a return to 2 per cent US inflation may take some time."

Mr Dicks recommended encouraging companies and households to "accept lower living standards. This approach is closest to what the European Central Bank and Bank of England have been trying to do."

However, without interest rate cuts, Mr Dicks said the UK economy was also "likely to perform worse than expected".