Inflation set to be a big problem in 2008

Consumers and businesses experiencing debt problems will be hoping that the predicted inflation figures for 2008 aren't as high as initially expected.

Analysts are forecasting that inflation will surge past it's target figure of 2 per cent, meaning the Bank of England will be less likely to lower the base rate.

Many consumers are already hoping for another base rate fall in 2008, which could potentially save them massive amounts of money on numerous repayments.