Inflation, as measured by the Consumer Prices Index, rose from 3% in October to 3.1% in November although falling prices for products such as travel goods and financial services prevented a bigger rise.

The Office for National Statistics said today that the rate was the highest since March 2012. November CPIH (consumer prices including owner occupiers’ housing costs) was 2.8%, unchanged from October.

ONS says the largest contribution to the CPI rise was from air fares which fell between October and November but by less than a year ago. There were also price rises for recreational and cultural goods and services, notably computer games.

As a result of CPI being above the Bank of England ceiling of 3%, Mark Carney, the governor of the Bank of England, will now have to write a letter to Chancellor Philip Hammond explaining how the Bank intends to bring inflation back to its 2% target.

Mr Carney is obliged to write a letter to the Chancellor if the Consumer Prices Index (CPI) inflation rate is above 3% or below 1%.

In November, the Bank of England doubled its key interest rate for the first time in more than a decade from 0.25% to 0.5%, a move expected to hold back inflation.

Some commentators have expressed concern about the recent rise in inflation and the impact on family finances and investment returns.

Alistair Wilson, head of retail platform strategy at Zurich, said: “Higher inflation is putting further strain on family finances as we approach what is already the most expensive time of the year, and it looks set to remain above the rate of wage growth as we move into 2018.

“While there are positive signs that a pay rise may be around the corner for Britain’s workers, with the recent Budget promising an above-inflation pay rise in the New Year for those on the minimum wage, it can be all too easy for this to fall away on daily spending rather than make a difference in the long-run.”

Charlie Parker, head of portfolio management at Sanlam UK, said: “For an investment manager inflation is the enemy. It is almost always out there in the world working every day to erode the value of our clients’ investments.”