This marks a small inflation drop after October’s record level, which was the highest annual rate recorded in the National Statistic series’ 25-year history. 

The CPI including owner occupiers’ housing costs (CPIH) also eased to 9.3%, compared to 9.6% in October.

According to the ONS, the downward contribution to the change in both the CPIH and CPI annual figures came from transport, particularly motor fuels. 

However, rising prices in restaurants, cafes, and pubs made the largest and partially offsetting upward contribution, the data showed. 

The House Price Index for October, released in conjunction with the inflation figures, revealed that UK average house prices rose by 12.6% in the year to October. 

Average house prices notched in at £296,000 in October — £33,000 higher than this time last year and just slightly higher than £295,000 in September.  

Industry experts react to latest ONS inflation and house price index figures

This section will be constantly updated throughout the day — check regularly for more comments from industry experts

12:55pm

Jason Tebb, CEO at OnTheMarket.com: 

“This data may be a little historic, indicating stronger price growth in October compared with September.

"Overall, the rebalancing of the market continues, as double-digit inflation, rising interest rates and the higher cost of living inevitably impact the confidence of the average property-seeker.  

"That said, there are still those who need to move, even if conditions are more challenging.

•   What does the specialist finance industry need in 2023 and beyond?
•   Industry reacts to inflation reaching 11.1% and average house price hitting £295,000
•   Industry reacts to inflation rising to 10.1% and average house prices reaching £296,000

"Experienced local agents will increasingly come into their own in terms of pricing property realistically, ensuring a successful transaction in a tougher market.” 

12:25pm

Vikki Jefferies, proposition director at PRIMIS Mortgage Network: 

“Today’s figures demonstrate the resilience of the housing market, with the average UK house price increasing by 12.6% over the year to October 2022, up from 9.9% in September 2022.

"It is positive to see that, with many mortgage lenders now reinstating products, we have seen the average five-year fixed-rate product dropping below 6% in December for the first time in two months.  

“With the cost-of-living likely to remain high as we head into 2023, affordability remains a key priority for many consumers.

"As a result, the role of expert financial advice will continue to be vital.

"Brokers need to work with their clients to help them find the most suitable product for their individual circumstances.”

11:00am

Avinav Nigam, co-founder of IMMO: 

“The impact of continuous interest rate rises, the mini-Budget turmoil, cost of living crisis, and the impending recession is now fully materialising. 

“In the coming winter months, expect a constant slowdown in house price growth with possible large price corrections in areas across the UK. 

“This trend might only reverse once mortgage rates come down — after the Bank of England reduces interest rates to counter a recession — once the spring-summer economic momentum helps improve things.

“The cost of living crisis is also constraining purchasing power for homeowners and individual investors alike, leading to a drop in demand.

“House prices don’t ‘crash’ in the way the stock market does, since housing, unlike stocks and shares, is essential for living. 

“However, it is likely that we will go through a major pricing correction — a comedown from the heady double-digit growth house prices have experienced through the past few years.”

9:52am 

Jeremy Leaf, estate agent and former RICS residential chairman:

“At first glance, this most comprehensive of all the housing market surveys seems to demonstrate considerable resilience. 

“However, digging a little deeper, these numbers reflect what was happening in late summer and early autumn, not what we’ve been seeing in our offices since.

“Most demand, fuelled by mortgages arranged on more advantageous terms, seems to have been satisfied.

“A better test will come in early 2023 when a large proportion of buyers have to decide whether they will continue to press the pause button or review their searches in response to lower mortgage rates and inflation figures.”

8:08am

Dan Boardman-Weston, CEO and chief investment officer at BRI Wealth Management: 

“The rate of inflation continues to run at multi-decade highs, with the cost of gas and electricity and food causing issues for households. 

“The Bank of England remains in a really tricky spot, as it needs to raise rates, given that inflation is far in excess of its 2% target, but the economy is in a parlous state. 

“The bank is likely to raise interest rates by 50 percentage points tomorrow in order to keep the rate of inflation falling in to 2023. 

“The government and Bank of England have a difficult balancing act ahead of them and we hope it is successful in reducing inflation without causing too much economic pain.”

7:05am

Paul McGerrigan, CEO at Loan.co.uk: 

"Inflation remains stubbornly high, but there are economic signs that this has now peaked, and the expectation is that numbers will continue to fall gradually into 2023 as new food and energy supply deals are brokered and some of the big government moves start to take effect.
  
“Stability in No. 10 has helped to calm the markets and it feels like the wheels are slowly being reattached to the bus. 

“It’s important that the MPC proceeds with caution tomorrow; while its vital to get inflation under control, it is fundamental not to choke growth and so, pushing rates too high and too quickly would not be advised.  

“Interest rate rises have already poured cold water on the property market and while a slowdown is positive, a significant drop in house prices is not.

“For consumers considered financial planning remains vital to navigate the short-term storm of high prices, high interest rates and real-terms decline in income.”