UK inflation fell more than expected in November, easing pressure on the Bank of England to keep raising interest rates amid the recession.

The consumer price index rose 0.4% for the month, compared to a worrying 2.0% rise in October, which was driven by an adjustment in regulated household energy prices. Analysts had expected a 0.6% rise in the index.

This brought the year-on-year inflation rate down to 10.7% from 11.1%.

The Office for National Statistics said the modest decline in prices was mainly due to falls in the prices of petrol and used cars, as well as clothing, hotel rooms, games and toys. The biggest effect on the figure was the price of alcohol consumed in restaurants and pubs.

Setting aside volatile components such as fuel and energy, core CPI also fell more than expected, rising just 0.3% rather than the 0.5% previously forecast. On an annualized basis, core inflation now stands at 6.3%, down from 6.5% last month.

The data comes just hours before the Bank of England is due to announce its latest monetary policy decisions. The Monetary Policy Committee is expected to express at least 3 views on what action should be taken, with some members shying away from further significant interest rate hikes at a time when inflation appears to have already peaked.