Inflation drops in November

After a 4.5% fall in October, economists had predicted a larger decrease to 3.9% in November. Inflation is continuing to fall on the back of lower oil and energy costs and most economists expect inflation to fall further into 2009. "There is an air of unreality about these numbers, since most analysts and businesses are seeing evidence of falling prices. This is likely to be the way the world will be for the next couple of years," explains Vince Cable, Shadow Chancellor for the Liberal Democrats. "But these figures do suggest that at a time when we are heading into a painful recession, ...