Inflation fell more sharply than expected in April, figures from the Office of National Statistics revealed this morning.

The Consumer Price Index (CPI) fell to 2.3 per cent in April, down from 2.9 per cent in March.

The figure, which is lower than the 2.4 per cent economists had predicted, is the lowest inflation Britain has seen in over a year.

The falling CPI was caused mainly by falling utility costs such as electricity and gas, the ONS has said, but falling food and non-alcoholic drinks prices are also playing a part.

The Retail Price Index (RPI), which also takes into account mortgage repayment costs, has continued to fall after slipping into negative growth for the first time in nearly 50 years this March. It fell to -1.2 per cent in April.