The annual Consumer Price Index (CPI) reading for inflation grew by 5.1% in November, up from 4.2% the month previous.

This is the highest level of inflation seen in the UK since September 2011, when CPI inflation came to 5.2%.

Transport and energy costs were the biggest factors in this rise.

Earlier this month, a survey carried out by the Bank of England (BoE) showed that the public is losing confidence in its approach to inflation, and has been doing so over the last three quarters.

The Monetary Policy committee’s decision on whether or not raise interest rates before Christmas is published tomorrow. The market generally expects the bank to hold rates.

Scottish Friendly savings specialist Kevin Brown says: “Inflation in the UK is on track to reach its highest level for 30 years in 2022 but the looming threat of Omicron means it is unlikely that the bank will choose to risk destabilising the economy or household finances further by raising interest rates this week.

“By the time the next opportunity comes round to raise rates in February next year, the bank could be facing an uphill battle to bring inflation in check.

“The bank’s lack of action means households in Britain are taking measures into their own hands to mitigate the rising cost of living.”

And regarding the impact this is having on the mortgage sector specifically, Shawbrook Bank sales director Emma Cox says it’s too soon to tell how much inflation will affect buyer affordability.

“The BoE’s decision on interest rates may be less significant as the market reacts to a new Covid-19 variant emerging and the government activating ‘Plan B’,” she says.

“What is clear,” Cox continues, “is that the continued lack of supply in the market, something that cannot be solved overnight, will continue to drive up prices in the best interest of sellers.”