Jefferies was wrongly arrested December 30, 2010 on suspicion of Yeates’ murder. He was released January 2, 2011.
After he was detained, he said the tabloid press “embarked on a frenzied campaign to blacken my character.”
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Jefferies said: “They published a series of very serious allegations about me that were completely untrue.”
He added that he felt like he was under house arrest because of the surrounding media frenzy.
Jefferies has brought legal proceedings for libel against eight newspapers.
Jefferies, a retired school teacher, won “substantial” undisclosed libel damages from the newspapers over his claims.
The publications he sued printed apologies, but they were buried in the newspapers and not featured on the front page.
During the inquiry, Jefferies was asked about when he was referred to as a “sexually perverted voyeur”.
He said: “It was suggested there may have been some sort of sexual motive to the murder of Jo Yeates and at that time I was obviously a suspect of that murder.
“On the other hand it was suggested in some articles that I was gay so that created a problem as far as that was concerned.
“It was then suggested in another article that I was bisexual so the press were trying to have it every possible way.”
He said his life returned to a semblance normal after he was able to return to his flat in April this year, but fears his life will never be the same.
“I suppose it is true to say there will always be people who don’t know me, people who don’t know anybody that I know, who will retain the impression that I am some sort of very weird character indeed who is probably best avoided,” he said.
“I will never fully recover from the events of last year. The incalculable effect of what was written about me by these highly influential tabloid newspapers is something from which it will be difficult ever to escape.
“The purpose of my agreeing to give this statement is that I hope it may prevent the same fate befalling someone else.”
Singer Charlotte Church will appear as a witness at the inquiry, to describe how the News of the World published story about her father having an affair despite knowing her mother was suicidal.
Broadcaster Anne Diamond and Northern Ireland human rights campaigner Jane Winter will also appears as witnesses at the inquiry.