The retail inflation has touched 15 months high at 4 point 88 per cent in the month of November, 2017 which was at 3 point 85 per cent in October, 2017.
The consumer price index net of food and energy prices rose 0.9 percent year-on-year following 0.8 percent in October.
The Reserve Bank's survey of households showed inflation expectations firming up in the latest round for both three months ahead and one year ahead horizons.
As the current rate of inflation is more than 1% away from the Bank of England's 2% inflation target, governor Mark Carney will be required to write a letter to Chancellor Philip Hammond to explain how he intends to bring inflation back under control.More news: Amazon expands Echo and Music Unlimited to 28 new countries
Food price inflation for rural areas stood at 4.1 per cent in November 2017 against 1.75 per cent in October and 2.7 per cent in November 2016. For vegetables it was 22.48 per cent in November.
Petroleum displayed the largest annual growth, increasing to 6% in November from 4.1% in October. The inflation in the segment was a only 7.47 per cent in October.
"Any faster-than-expected removal of central bank liquidity could be a shock to a range of asset classes - stocks, bonds, cryptocurrencies, art, you name it - which have feasted off cheap money and a sustained increase in inflation could be an early signal that the bull market party is moving into its final phases".
Sanlam UK head of portfolio management Charlie Parker says each client experiences individual rates of inflation and the price of luxury goods has risen far more in recent years than mainstream products. The CPI in November 2017 saw a monthly growth of 1.1 per cent in comparision to October 2017, whereas Consumer Food Price Index rose 1.58 per cent. Meanwhile, fuel inflation quickened to 7.92 per cent from 6.36 per cent, driven by rise in global prices of crude oil. "All in all, there is little here to suggest that the MPC needs to raise interest rates again quickly to stamp out inflationary pressures (the MPC's next policy decision is Thursday)". The headline inflation outcomes have evolved broadly in line with projections.