The outgoing Governor of the Bank of England today delivered some good news for "the first time since the financial crisis began" in 2007.
The Squeeze could be the title of a horror B-movie but it describes a nasty phenomenon affecting every purse or wallet in the country.
The Co-Operative Bank's chief executive has resigned after Moody's downgraded its debt to junk status.
The Bank of England has raised hopes over the economy by predicting a "modest and sustained" recovery.
But outgoing Governor Sir Mervyn King warned that inflation will remain stubbornly high until at least the end of 2015.
IHS Global Insight economist Howard Archer said commodity price falls have "diluted upside risks". That could mean inflation peaking at about 3% during the summer, he said.
– Howard Archer
Outgoing Governor Sir Mervyn King could actually have a rare parting present of being able to deliver a report that does not contain higher consumer price inflation forecasts or lower GDP (gross domestic product) growth projections.
Indeed, Sir Mervyn may even be able to present a marginal downward revision to the consumer price forecasts although having higher growth forecasts may be pushing his luck.
Outgoing Bank of England Governor Sir Mervyn King could deliver a rare dose of economic optimism by nudging up the UK's growth prospects in his final inflation report today.
Economists believe recent encouraging signs from the economy could see the Bank hold or even lift growth forecasts, while it is also expected to trim its quarterly inflation forecast on the back of recent falls in oil and commodity prices.
Britain eked out growth of 0.3% in the first quarter and a recent trio of positive surveys for April showed improved growth from the service sector, near-stabilisation in construction and improvements in manufacturing.
The quarterly inflation press conference is Sir Mervyn's last before he hands over to new governor Mark Carney in July.
The UK has dropped from 5th to 12th place in a international comparison of household disposable income, according to a new report by the Office for National Statistics.
The UK was ranked fifth in 2005 but has since dropped by seven places to 12th in 2011, in a comparison of household actual disposable income per head.
The report suggests that the figures reflect the experiences of households since the recession began in 2008.
The increasing price of goods and services, as well as the devaluation of sterling during this period are cited as key reasons for a reduction in disposable income.
Lord Young was previously forced to resign as Mr Cameron's enterprise expert for underplaying the effects of the recession but was subsequently brought back.
– Lord Young
Despite tough economic conditions the number of new businesses has remained remarkably resilient and at historically high levels. Business closures have remained stable and lower than pre-recession levels.
It has always been the case that a recession can be a good time to grow a business.
This is true for a number of reasons. Competitors who fall by the wayside enable well-run firms to expand and increase market share. Factors of production such as premises and labour can be cheaper and higher quality, meaning that return on investment can be greater.
Giant US firms such as GE, Microsoft and Disney all started during a recession as did half the firms on the 2009 Fortune 500 list, he points out.
Claims by a senior adviser to David Cameron that lower wages in a recession help make it a better time to start a business were defended by Downing Street.
Trade unions and Labour seized on the analysis by Lord Young, accusing him of "revelling in" the availability of cheaper workers.
But Number 10 said the Tory former minister was simply reflecting the fact that start-ups tended to multiply and thrive during economic downturns and accused critics of deliberately misinterpreting his words.
The peer's comments were reported in The Observer.
Matthew Sinclair Chief Executive from the Tax Payers' Alliance and Councillor Theo Blackwell from Camden Council spoke to Daybreak about the town hall "Rich List" which reveals some of the highest earners in councils across the UK.
Speaking about the salaries of council leaders Mr Sinclair said: "Not everyone can get the very best chief executive and they [the councils] all get into this bidding war, and that's what's happened."
In response Mr Blackwell argued: "You need to have this in perspective here, the pay ratio from top to bottom at a council like Camden is ten to one the pay ratio in the FTSE 100 is 262 to one."