Price rises slowed last month, but the cost of living remains close to its highest level for 40 years, it was revealed by the Office for National Statistics this morning.
UK inflation, the official measure of the rate of price rises, fell to 10.7% in November from 11.1% in October.
The BBC says the drop was due to petrol prices falling from record highs, but was offset by price rises for alcohol in restaurants, cafes and pubs.
Some analysts said November's lower figure showed that inflation has peaked and price increases will slow down.
However, food prices continued to rise, with annual food inflation hitting 16.5% - the highest rate for 45 years - up from 16.4% in October.
Chancellor Jeremy Hunt said that the aftershocks of the pandemic and the conflict in Ukraine meant that high costs were "plaguing economies across Europe".
Struggling
He also acknowledged that families and businesses are struggling in the UK.
"Getting inflation down so people's wages go further is my top priority, which is why we are holding down energy bills this winter through our Energy Price Guarantee Scheme and implementing a plan to help halve inflation next year," added the chancellor.
"I know it is tough for many right now, but it is vital that we take the tough decisions needed to tackle inflation - the number one enemy that makes everyone poorer. If we make the wrong choices now, high prices will persist and prolong the pain for millions."
- Meanwhile, the rapid rise in consumer prices is slowing in America as costs fell for energy, used cars, medical care and airfares.
US inflation was 7.1% over the 12 months to the end of November, dropping from 7.7% in October, figures out yesterday from the US Labour department show.
That was the slowest pace in nearly a year and better than analysts expected.
The BBC says US shares jumped on the news, while the dollar fell against a basket of currencies, reflecting investor bets that the interest rate increases that have pushed it higher will slow.
But, though the overall picture is improving, the cost of some items such as housing continue to climb.
The US central bank has raised interest rates at the fastest pace in decades this year, in an effort to get the inflation problem under control.
Impact on the US economy
Earlier this month, Federal Reserve chairman Jerome Powell said that the bank would start to move less aggressively to see how the interest-rates moves are playing out in the economy.
By boosting borrowing costs, the Federal Reserve is expecting to dampen demand for expensive items such as homes and cars, helping to slow the economy and ease the pressures pushing up prices.
Seema Shah, chief global strategist at Principal Asset Management, said the Federal Reserve still has work to do to get inflation back to its 2% target, but the slowing inflation rate would raise hopes that it "may actually be tamed within the next 12 months".
The Fed has been helped in its inflation flight by the resolution of many of the supply-chain issues that emerged during the pandemic, as well as a sharp decline in the cost of motor fuel.
On average, a gallon of gasoline in the US now costs less than it did a year ago, motoring association AAA said last week. That is thanks in part to a drop in oil prices fuelled by investor expectations of reduced demand in the months ahead.