In the run up to Christmas some of Britain's biggest retailers have begun a fierce price war. This week well-known retailers have been cutting prices for short periods of time in a bid to boost sales. It is not only high street retailers that are feeling the effect of the credit crunch, as supermarkets are also trying to entice customers into purchasing early for Christmas with special offers on various products. These moves by Britain's retailers come despite figures released from the Office for National Statistics suggesting October's sales only fell by 0.1%, which was much smaller than the forecasted 0.9% decline. As the countdown to Christmas continues, taking advantage of these types of offer can help us to cut costs and get the best savings possible. However, it’s vital to only buy what you had originally intended, if not you might end up spending more than you would have done if there hadn’t been a sale on!

Let’s now review the top money stories of the past week commencing the 17th November 2008.

Monday 17th November

Energy firms pressured to drop fuel costs – Oil prices dropped to a two year low today, sparking further pressure on energy firms to lower domestic energy bills. The first round of cuts - expected to reduce annual bills by £100 - is expected to be as soon as January. However, political pressure is urging energy firms to act sooner as many consumers are struggling to cope with rising household bills and large job cuts, more of which were announced this week.

Tuesday 18th November

Inflation falls –Inflation fell at a record pace in October to 4.5%, as oil, transport and food prices fell. The Consumer Price Index (CPI) fell from a 16 year peak of 5.2%, which was reached in September, to the lowest rate since July. The Retail Price Index (RPI), an alternative measure of inflation that includes house prices, fell from 5% to 4.2% marking the biggest fall since 2003. The large fall in inflation helps to explain the dramatic 1.5% interest rate cut that occurred earlier this month. The Bank of England has forecast that inflation will continue to fall, expecting it to fall below the target of 2% next year, with the possibility that it might drop as low as 1%. David Kern, the chief economist at the Chambers of Commerce has predicted that in light of these figures there will be a further fall in interest rates.

Rent prices fall - The Royal Institute of Chartered Surveyors (Rics) has discovered that due to the increasing number of unsellable homes, rent prices have been forced down as homeowners have resorted to renting their properties. Rent prices in London and the Southeast have been the worst hit.

Savers encouraged to act fast as rates descend - Saving interest rates offered by banks are now being altered to reflect the 1.5% in interest rates that occurred earlier this month. As banks are still in need of depositor's money, there are still competitive rates to be found, but savers should move fast to get the best rates. Typically the most competitive savings rates are found in fixed rate accounts which tie up your money for a specified period of time, which is typically a year. Financial advisors are also encouraging savers to spread their savings across a few different accounts. Price comparison sites such as MoneySupermarket.com and USwitch are handy to check out the different deals available.

Wednesday 19th November

Post Office in talks with Bank of Ireland - The Post Office is in talks with the Bank of Ireland to create a current account that offers unlimited guarantee on deposits. This comes after MPs have been pressured to create a public sector ‘people’s bank' which will provide basic financial services to those most in need. This news comes after the announcement that the Post Office will retain the £1billion, 5 year contract to distribute benefits to 4.3million claimants.

Thursday 20th November

Mortgage lending picks up - According to the Council of Mortgage Lenders (CML), mortgage lending increased slightly in October. The total lending rose by 7% from the previous month. Despite the slight increase, mortgage lending is down by 44% from October last year.

Friday 21st November

Repossessions rise - Figures released today from the Council of Mortgage Lenders (CML) have shown that the number of repossessions in July, August and September rose by 12%, with the CML suggesting that full year figures for 2008 could be up by 70% from 2007. The latest statistics also showed that the number of borrowers in arrears in the third quarter increased to 168,000; up by 8%. These figures reflect the increasing struggle for homeowners to meet their mortgage payments. The director general of CML, Michael Coogan, has called for the Government to step up its help for homeowners facing difficulties in their Pre-Budget Report that is published on Monday. If you’re worried about repossession it is vital that you contact your lender as soon as possible.

Train fairs to rise by 6% in January - Ticket prices across England, Scotland and Wales are expected to see a sharp increase of more than double the rate of inflation in the New Year. Regulated fares, which include season tickets, are expected to rise by 6%, whereas leisure and advanced-fare tickets will see an average rise of 7%. The Association of Train Operating Companies (Atoc) said extra revenue will be invested in improving the railway and delivering better value for taxpayers in line with the Government's policy to reduce subsidies to the railway by 40% between 2006/7 and 2013/14.

Prepared for Moneybasics by Joanna Parsley, Advocacy Officer (Credit Action).