It has been nearly 30 years since inflation was a real problem in this country.

During the 1970s and 1980s, inflation was a persistent issue and caused real economic difficulties for both families and the national economy.

I myself remember the battle by government to control inflation and on the back of that the very high interest rates that resulted.

Inflation hit a high of over 25 per cent in the mid-70s and interest rates where over 15 per cent in the 1980s.

Inflation isn’t just numbers on a chart. It can have a devastating impact on people’s budgets and lifestyles.

It reduces the value of wages and devalues savings as well as having a detrimental effect on investment.

Inflation can also be a self-propagating phenomenon – with wages increasing to match prices and prices increasing to reflect wages. This unsustainable spiral is the real danger. What we all want is wages to increase while prices settle down.

The present situation does have some differences from the past. First, this seems to be a truly global problem, not just unique to the UK.

Indeed, both the EU and the USA are suffering just as much from inflation. The main driver of the rising prices has been the impact of Covid-19 on supply chains, particularly from the Far East.

On top of this there has been a very steep rise in worldwide energy prices, and then came the war in Ukraine. Unfortunately, the legacy of the Ukraine war will have an impact for years to come beyond the geopolitical.

It will affect energy and food prices right across the world and there is a real danger of unrest in some countries.

These are the reasons for the inflation, but the consequences for families and individuals is what matters.

Energy and food costs are the most important outgoings for any family. They are the fundamentals, and it is these costs which are rising most rapidly.

So, what can be done? This really is a challenge. If the policy makers get it right inflation should start to drop next year and move towards a more manageable level.

It is vital that the Government looks at all the options and takes further action to help people across the country.

Next month, the increase in the National Insurance threshold will help the low paid the most meaning a £330 tax cut for 30 million people.

This along with cutting the Universal Credit taper rate, and raising the National Living Wage will help many, but with inflation continuing, more will have to be done.

I will be pushing the Government on this.

We are going to have to focus on the lowest paid, who are disproportionately affected by these increases, but every one of us will be affected by these events.

Globalisation has led to many positive things, but we are also learning that in a world so interconnected every event has a repercussion and all actions have consequences.