Inflation rose 0.5% to 5.2% in September, the Government has announced.

The rise in the Consumer Prices Index (CPI) - the measure adopted by the Government for its target for UK inflation - has been blamed on further increases in the cost of energy bills with the annual rate of inflation for energy and household bills now standing at 15% - the highest since 1989.

The Retail Prices Index (RPI) - the measure used to determine increases in pensions and state benefits - rose by 0.2% and now stands at 5.0% - the same as it was in July.

What does the increase in inflation mean for you? Do you think it will fall as the cost of fuel and energy falls in the coming months or are you worried by the half point cut in interest rates announced last week?

Inflation..... Personally I've been saying for the last 6 months that before April 09 we will top 7%. People laughed and said it wouldn't even hit 4.5%....

Even though the Base rate dropped, it will still need to drop, and although lenders have passed on the savinging to existing customers, the new deals on the market are still increasing as the cost of borrowing money still remains high.

Personal loans, interest rates still increasing, and everyone is feeling the pinch. SO yep. I still think it's going to get a lot worse. (I'm a positive person.... Honest!)