By Daniel Hunter
Data released by the Office for National Statistics (ONS) today (Tuesday) has revealed that UK inflation fell to 2.4% in April.
The consumer prices index had been 2.8% in March, marking the first time that the growth in inflation has slowed since Autumn 2012.
The figure is still above the Government's 2% target but the fall will be welcome as latest signs show signs of a pick up in the economy.
Inflation as measured by the Consumer Prices Index (CPI) has been running above its 2% target for the past four years but the Bank of England believes it will rise further to around 3% during 2013. The Bank expects inflation then to ease back and return to target in 2014.
"This is great news for consumers, who have been struggling with persistently high prices for what seems like an age," Richard Driver, Caxton FX Analyst, said.
"Significant falls in fuel prices were a major driver of today’s figure, which will be a relief to motorists.
"Wage growth continues to lag inflation and this remains a key concern, highlighting the tough economic conditions that persist regardless of the brighter growth outlook that has emerged in recent weeks.
"At 2.4% we are still significantly above the official target but this latest decline is nonetheless very welcome indeed.
"Higher prices still look likely in the Autumn, so consumers are by no means out of the woods yet."
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