Official figures released by the Official for National Statistics today showed inflation fell to its lowest level in almost five years during August. Despite these figures suggesting that the economy was still fairly bleak, the governor of the Bank of England, King Merv, has said that there are signs that the UK economy has returned to growth in the current quarter.

In a Treasury Select Committee hearing, Mervyn King said there were indications of a pick-up in economic activity – both in the UK and overseas. But he also warned the effects of the financial crisis caused by the collapse of US investment bank, Lehman Brothers (first birthday today), would be ‘pervasive and long-lasting’.

And along with every other expert, pundit and armchair economist, he covered his arse by adding that there remained doubts over the sustainability of the global economic recovery.