He said inflation - which has increased this week to 2.8% raising the prospect of an increase in interest rates - would fall to 2% next year and carry on falling.

BBC: NEWS | UK | UK Politics | Brown cuts basic tax rate by 2p

Computer-maker Dell has seen its quarterly profit fall by 47% after it was hit by falling sales to both consumers and large companies.

BBC: Dell's profits slump by 47% on weak sales

Have you ever been on track to a financial goal but then found yourself falling back into bad habits like spending too much or over-reacting to a fall in the stock market?

FORBES: How to Overcome Obstacles and Stay on Track to Financial Success

Long-term interest rates have also been falling sharply of late, and may have further to fall.

ECONOMIST: The yen: Asian nightmares | The

In theory, global trade should cause prices in different countries to converge: the prices of low-cost producers should gradually increase as wages rise (ie, China's falling prices were a temporary anomaly), while the prices of high-cost producers should fall.

ECONOMIST: Why China is not to blame for the surge in global inflation