Sheffield cutlery making business hit by high energy and metal prices
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UK inflation rate falls but still above target

People and businesses across England have revealed how their budgets have been squeezed by months of higher prices.

The rate of Consumer Prices Index (CPI) inflation fell from 5% to 4.8% in November, but it remains well above the Bank of England's 2% target.

And while food, petrol and energy bills climbed, gross annual earnings in England rose by 1.3%, the ONS said.

The Bank of England expects inflation to "fall sharply" in 2012.

Hugh Pym reports.