Hopes are growing that the worst of the costs crisis is now passed as official figures showed UK inflation eased back last month, but households remained under pressure due to sky-high food and energy bills.
The Office for National Statistics (ONS) said the rate of Consumer Prices Index (CPI) inflation fell by more than expected to 10.7% in November, from 11.1% in October – the biggest drop for 16 months.
It said the decline largely followed falls in the price of petrol and diesel and second-hand cars.
Economists had expected CPI inflation to fall to 10.