Inflation drops sharply but businesses and shoppers not feeling much change

Inflation is down, but not far enough for businesses and shoppers to really feel a change for the better.

New statistics show that it's well down, and sitting at 3.9 per cent.

That's not back to the pre-pandemic levels, and it's also not below the 2 per cent target the Bank of England is trying to achieve through higher interest rates.

It's an expensive and busy time of year for those who celebrate during the festive period, and Belfast's Cornmarket was hiving with shopping activity.

Some shoppers I spoke to had heard about the inflation headlines already, others were learning of it for the first time when we spoke.

Either way, most agreed that despite the stats, they're not noticing much of a change in situation.

That's because goods and foods might be falling, their bills - especially mortgages - remain very high.

Nearby, on High Street, a greengrocer and a butchers shop sit side by side.

Both are family owned, and both greet their customers by name.

In Jackson Greens, a loyal customer from East Belfast told me I should try the pears, which are "the best" he's ever had.

That backs up what David Jackson told me, which is that they are very proud of the fresh produce they buy in daily.

He shared his thoughts on inflation, fluctuating prices, and the impact of strikes with UTV.

I didn't just meet David Orr from Orr's Family Butchers - I met his son and niece, who were serving customers with a smile alongside him.

They also boast top quality, and say it keeps the same people coming back again and again .

Mr Orr spoke of rising bills, and trying to keep costs down for those customers.

The Chancellor gave an interview beside a Christmas tree on the subject of inflation today.

Jeremy Hunt said that this is good news, admitted that some families may still be finding it extremely difficult to manage financially, but that upcoming extra measures like reduced National Insurance should be welcome relief.

More festive than this scene, was one I encountered in North Belfast.

Liam Crockwell works for an electrical company but for the last few years, in the winter, he has been running a charity grotto at his own (highly decorated) home.

The presents for the children are donated by colleagues and clients, his sister helped him sew his festive ensemble and visitors to the grotto donate cash to local charities.

They've raised thousands in the last four years.

Mr Crockwell says he does it because "commercial Santas" in shopping centres can be expensive and he believes all families should afford a trip top see Mr Claus.

It's Jeremy Hunt's job to try and make life easier for those struggling, but it's not "Santa Liam's" job.

He just does it because he wants to.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know.