The latest inflation figures are out and they show a fall from 10.1% to 8.7% - so the first time it has been below 10% since August last year.

But in a sign that interest rates could still go up - core inflation rose from 6.2% to 6.8%. That is depressingly the highest level for 31 years

And the price of food is still higher than anywhere else in the Eurozone, which is at 13.5 per cent. In the UK food prices are up 19.1%.

So the Bank of England which next meets June 27 could still put up interest rates, again, since it has a stated target of inflation at 2 per cent. The government has said it wants inflation to half this year.