The Bank of England Governor, Sir Meryvn King, has warned that inflation will rise to 3% or more and remain above target for another two years.
Mr King also predicted a "slow, but sustained recovery."
More top news
Peterborough United has filmed a spoof video of the John Lewis Christmas advert, using a local boy and the club's rabbit mascot.
After all the consumerism of Black Friday news a new charitable campaign online hopes to get people back into the spirit of Christmas.
Tributes are being paid to two young men from Plymouth who died after apparently taking white heroin by mistake in Amsterdam.