Putting a lid on prices?

THERE is, of course, no room for complacency. But could the tide finally be turning in the war on inflation?

The cost of living has dipped into single digits (just) thanks to some relief at the petrol pumps over the summer, although food prices are still rising sharply.

A week ago, the notion we could be near or – whisper it – even past the peak would have seemed preposterous. But Liz Truss’s bold energy price freeze should deal spiralling prices a massive blow.

Even so, with inflation still increasing by nearly 10 per cent a year – playing havoc with the finances of families, firms and the Government – the Bank of England must bear down on it with higher interest rates.

The economy has been buffeted by global headwinds beyond the Treasury’s control, including war and Covid. But with a raft of positive economic news this week, from growth to record low unemployment, the storm may at last be abating.