'Glimmer of hope' as inflation falls again

THE cost-of-living crisis could finally be easing after a second monthly fall in the rate of inflation.

- Jon Coates

It comes amid a “glimmer of hope” that the Government strategy to restore the ailing economy is having an effect, a business expert said.

Inflation is now at 10.5 per cent, compared with 10.7 per cent last November.

That, along with a drop in the wholesale price of gas last week has provided the first optimism for months for struggling families and businesses.

But retail and hospitality leaders warn that the next four or five months will still be very tough.

This is mainly due to planned rail strikes at the start of February and energy prices set to rise in April when Government support is cut.

Latest figures showed almost 5,000 restaurants and nightclubs closed for good last year, with three-quarters failing in the last six months as energy bills and cost inflation soared.