I was still enjoying Woody Allen’s output after most critics had given up on him in the early part of this century. It was only when he stopped making films in New York, starting with 2005’s Match Point that I felt that the quality deteriorated. He then continued to disappoint, including with the massively overrated Vicky Cristina Barcelona in 2008. Then, out of the blue, he delivered the sparkling comedy Midnight in Paris 2 years ago, followed by the slight but enjoyable To Rome with Love last year.

Now, with Blue Jasmine, it feels like Allen has truly confirmed his return to form. Cate Blanchett plays Jasmine, a wealthy and self cantered New York socialite, who loses everything when her husband (Alec Baldwin) is convicted for fraud and embezzlement. Trying to rebuild her life, she moves to San Francisco to stay with her working class sister, Ginger (Sally Hawkins).

In standard Hollywood fayre, the two very different sisters would find common ground and bond as Jasmine’s better qualities are discovered. However, in this sour and cynical film, Jasmine’s behaviour doesn’t improve as she becomes increasingly more desperate to find a way to return to her old lifestyle, and the cracks in her relationship with Ginger widen.

This is timely and thought provoking stuff, with a reveal near the end that will remove any shred of sympathy you have left for Jasmine. The performances are all spot on – this may be the best example of an ensemble cast in an Allen film since his masterpiece Crimes and Misdemeanours. Predictably good are Hawkins with a reasonable American accent, Baldwin at his oily best and the reliably great Bobby Cannavale as Ginger’s boyfriend.

More surprisingly, comedians Louis CK and, especially, Andrew Dice Clay make telling contributions in smaller roles. But, it is Blanchett’s film, mesmerising as the duplicitous and disintegrating Jasmine. An Oscar nomination will surely follow next year, and at this stage she must be favourite to pick up the best actress award.

Don’t miss out on seeing this film, and I’m already looking forward to Allen’s next feature, set in France and starring Colin Firth, which will be coming out this time next year.