Let's pretend the banking system is not in turmoil. If that was the case, there is no doubt that today's disclosure that inflation soared to 5.2 per cent in September would be the main headline. But while the new figure is a reflection of the increasing pressure on our wallets as the price of food and energy has soared, it is not all bad news. The signs are that inflation could start to ease in October and even fall sharply. This does not mean that prices are falling, but it does mean they have stopped rising so fast.

The other piece of good news is that state pension payments are usually pegged to September's RPI rate of inflation. So from next April, pensioners will see their weekly payments boosted by 5 per cent. If it was pegged to the rate in, say, April, payments would be rising by only 4.2 per cent.

However, the downside is that it is pensioners who have been the worst affected by the recent prices rises as a bigger proportion of their income is spent on gas and electricity and food, with some organisations claiming that the real rate of inflation suffered by pensioners is closer to 9 per cent.

The Government's coffers are pretty bare after yesterday's deal to buy large chunks of three high street banks, but an extra payment to pensioners this winter wouldn't go amiss.

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