Higher food prices, energy bills and housing costs are set to push inflation higher when the November reading is published next Wednesday.

Deutsche Bank estimates general prices will have risen to 2.5% last month from 2.3% in October.

Hargreaves Lansdown opts for a slightly higher forecast of 2.6% when the Office for National Statistics publishes its data.

The German investment bank’s senior economist Sanjay Raja says he sees “more upward pressures percolating” in the UK economy other than stronger food and higher oil prices.

He adds that private rents rose by 0.5% last month, while other housing costs were up 0.2%.

Hargreaves Lansdown head of money and markets Susannah Streeter adds: “Higher tobacco duties and energy bills will be taking a toll. Our desire for travel has been sending airfares soaring, and with grocery price inflation also heading upwards again, policymakers are once again having to deal with a hotter mess of prices.

But she points out: “Some of these effects had already been forecast by the Bank of England, and so they may not move the dial too much in terms of interest rate expectations.

“The Bank has already said it’s less concerned about inflation driven by external factors, and more focused on whether it feeds into more domestically-powered inflation – through higher wages.”

The Bank’s rate-setting Monetary Policy Committee will set the base rate for the final time this year next Thursday.

Hargreaves Lansdown head of personal finance Sarah Coles does not expect a strong market reaction from the rise in the cost of living, or an expected Bank hold the following day.

Coles says: “A small bump in inflation and no movement from the Bank would be unlikely to frighten the horses in the mortgage market, because both are so widely expected. Higher-than-expected inflation, or comments from the Bank of England that make rate cuts seem more of a distant prospect, could mean more misery for mortgage borrowers.

“In either case, we wouldn’t expect massive movements, but even small changes can make all the difference to remortagers and buyers on the edge of affordability.

She adds: “New fixed mortgage rates tend to react fairly quickly to surprises, because it’s a competitive market with small margins, so they reflect any repricing at speed.

“As a result, they rose after inflation came in higher than expected a month ago, and then fell back a little after [Bank of England governor] Andrew Bailey emphasised that the Bank still expects to cut rates gradually next year.”

Bailey said last week he expects four 0.25% cuts next year, moving the base rate from its current 4.75% mark.

However, Deutsche’s Raja expects upward pressure on prices to continue into next year, which may give rate-setters cause for concern.

He says: “Looking ahead, we continue to see more upward pressure building – particularly within the services basket as the rise in employer National Insurance contributions, the change in employer National Insurance contributions threshold, and hikes to the National Living Wage all start to push prices higher around the start of 2025.”