Figures released by the Office of National statistics this morning show a 1.1% decline in the inflation rate to 6.8% from 7.9%, June to July this year, welcomed by economists but it is still way to high for comfort. There is no clear sign as yet that interest rates have reached a level that the Bank of England are comfortable with and let's not forget that the Old Lady's target for inflation is 2%. SME's and mortgage holders have been feeling the pain of high borrowing costs throughout the upward spiral in interest rates and there is no sign as yet that this is going to reverse, as higher wage claims are coming in left right and centre.