Inflation in the UK was 10.7% in November, the latest data from the Office for National Statistics (ONS) reveals.

November’s figure is down from the 11.1% reported in October.

The largest downward contribution of the latest figure came from transport, particularly motor fuels, with rising prices in restaurants, cafes and pubs making the largest, partially offsetting, upward contribution.

Last month, the Bank of England hiked the base rate by 75 basis points to 3% from 2.25%.

The increase marked the biggest since 1989 and the eighth time the bank has hiked rates.

The next Monetary Policy Committee (MPC) meeting is scheduled for tomorrow.

Loan.co.uk chief executive Paul McGerrigan says: “Inflation remains stubbornly high, however, there are economic signs that this has now peaked, and the expectation is that numbers will continue to fall gradually into 2023 as new food and energy supply deals are brokered and some of the big government moves start to take effect.”

“Stability in No. 10 has helped to calm the markets and it feels like the wheels are slowly being reattached to the bus.”

“It’s important that the MPC proceeds with caution tomorrow. While its vital to get inflation under control it’s fundamental not to choke growth and so pushing rates too high and too quickly would not be advised.”

“Interest rate rises have already poured cold water on the property market and while a slow-down is positive a significant drop in house prices is not.”

LiveMore managing director of capital markets and finance Simon Webb comments: “Inflation fell in November to 10.7% from 11.1% with the drop in fuel prices being a contributory factor. However, food prices are still worryingly high, going up by 16.5% and slightly higher than the 16.4% in October, which is the highest rise in 45 years. “

“The hope is that inflation peaked in October and is now on a downward spiral but there is concern about the rise in the energy price cap in April 2023, which could see inflation rise again.”

“The MPC meets tomorrow and will no doubt raise base rate to try to curb inflation even more, with most people predicting a 0.5% rise. As we move into 2023 it will be a tough time for many people having to tighten their belts.”