Inflation hits 41-year high of 11.1%

This will be driven by base effects being more favourable, with the annual comparisons made against months in 2022 when prices had already begun to rise.

Secondly, he said, the impact of higher interest rates are starting to permeate through the real economy, which will slow demand for goods and services.

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“Third, the tightness we have seen in the UK labour market is starting to show some signs of easing.”

Mike Bell, global market strategist at J.P. Morgan Asset Management, said the numbers sit “uncomfortable” alongside the message sent by the BoE earlier this month when it said “only modestly” higher interest rates would be needed to bring inflation back down.

“We are not so convinced,” he said.

“With headline inflation expected to stay elevated for some months yet, workers may still ask for more pay to protect disposable income.

"Until it is clear weaker activity is starting to weigh on wage demands, we believe the BoE will have to keep hiking.”