Inflation may have peaked, but the cost of living pain is far from over

The fall in petrol and oil prices is helping bring down the inflation rate, but an uncertain jobs market urges caution

At long last, Britain's annual inflation rate is on the way down. After hitting the highest level since the 1980s, heaping pressure on millions of households as living costs soared, official figures this week could bring some rare good news.

City economists expect UK inflation to have cooled for a third month running in January - the exact number is announced on Wednesday - helped by falling petrol prices and a broader decline in the global price of oil and gas in recent months. The hope now is for a sustained decline in the months ahead, continuing a steady drop from the peak of 11.1% seen in October.