Consumer prices 10.7 yy in Nov vs Reuters poll 10.9
Smaller increase in motor fuels helps lower inflation
Similar slowing seen in U.S. and euro zone inflation
Food and drink prices up 16.4, most since 1977
Bank of England seen raising rates by 50 bps on Thursday

LONDON, Dec 14 Reuters British inflation fell more than expected in November after it hit a 41year high in October, raising hopes that the price surge has peaked and offering some comfort to the Bank of England as it prepares to raise interest rates again.

The annual rate of consumer price inflation dropped to 10.7 in November from 11.1 in October, the Office for National Statistics ONS said, a bigger fall than the decline to 10.9 which economists had forecast in a Reuters poll.

The United States and the euro zone have also reported largerthanexpected drops in inflation for November.

Prices are still rising, but by less than this time last year with the most notable example of this being motor fuels, ONS chief economist Grant Fitzner said.

Like other central banks, the BoE is battling inflation that is far above its 2 target and it has raised rates sharply over the past 12 months, including a threequarterpoint rate rise in November, its biggest in over 30 years.

Economists mostly expect the BoE will raise rates again on Thursday to 3.5 from 3, despite the BoE39;s own forecasts that the economy is heading into a long recession.

Inflation in Britain is higher than in the United States or the euro zone…