Falls last month in the cost of energy and air travel – along with an easing of inflation across a range of everyday groceries including chocolate, coffee and rice – helped pull down the UK’s overall rate to its lowest level since spring 2025.

Electricity bills in April were on average 6.0% lower than a year ago.

This is a sharp turnaround from March, when they were up year on year by 5.6%.

Gas bills were already down 2.8% on the year in March, but in April they recorded an even larger drop, averaging 13.5% below where they stood 12 months ago, according to data from the Office for National Statistics (ONS).

The falls are a result of Ofgem lowering its energy price cap from the start of April by 7%, or £10 a month, for the average household using both electricity and gas, in response to measures announced by the Government to cut the cost of bills.

A steep drop in air fares also helped ease the overall rate of inflation.

The average cost of air travel was down 13.2% year on year in April, following a jump of 14.5% in March, reflecting the early timing of this year’s Easter holidays.

A wide range of groceries recorded an smaller annual increase in price last month than in March, including chocolate, mineral water, ready meals, coffee, meat, tea, rice and bread.

The same was true for the cost of tickets to cinemas, theatres, concerts and museums, while train fares swung from a positive rate of inflation in March of 1.9% to a fall of 0.2% in April.

There were also smaller rises in water and sewerage bills than a year ago.

All of these factors were more than enough to offset the upwards pressures on inflation last month, led by a sharp rise in the cost of fuel.

The average price of petrol in April was 16.6% higher than 12 months ago, compared with a much smaller year on year on increase of 2.0% in March.

Diesel saw an even bigger jump, from an annual inflation rate of 9.6% in March to 34.1% in April.

The steep increases reflect the ongoing impact of the Iran war, which began at the end of February and prompted a spike in the price of crude oil during March, in turn boosting the cost of filling up at the pumps.

Inflation also picked up pace in April for a handful of everyday groceries, including pasta, fish, potatoes and breakfast cereals.

The average cost of staying in hotels and similar accommodation was 3.8% higher in April than 12 months earlier, compared with a year on year rise of just 0.8% in March.

Below are some examples of how the Consumer Prices Index (CPI) inflation rate has eased or accelerated.

Two figures are listed for each item: the average rise in price in the 12 months to March, followed by the average rise in price in the 12 months to April.

– Examples where annual inflation has eased, ranked by the size of change:

Passenger air travel: March up 14.5%, April down 13.2%Water supply: March up 26.4%, April up 9.0%Electricity: March up 5.6%, April down 6.0%Gas: March down 2.8%, April down 13.5%Margarine: March up 3.1%, April down 1.4%Chocolate: March up 10.9%, April up 7.8%Mineral or spring waters: March up 9.4%, April up 6.3%Ready-made meals: March up 6.7%, April up 3.9%Coffee: March up 9.0%, April up 6.3%Cinemas, theatres, concerts: March up 7.4%, April up 5.2%Meat: March up 5.8%, April up 3.6%Tea: March up 6.7%, April up 4.6%Bread: March up 3.3%, April up 2.0%

– Examples where annual inflation has accelerated

Diesel: March up 9.6%, April up 34.1%Petrol: March up 2.0%, April up 16.6%Hotels/other accommodation: March up 0.8%, April up 3.8%Sauces, spices & culinary herbs: March up 2.6%, April up 4.9%Pasta & couscous: March up 4.4%, April up 6.1%Men’s clothes: March up 0.2%, April up 1.6%Fish: March up 4.5%, April up 5.7%Crisps: March up 0.3%, April up 1.5%Women’s clothes: March up 0.9%, April up 2.0%Potatoes: March up 0.5%, April up 1.5%

Inflation fell for the first time this year in April, official statistics show – but economists warn this is merely the calm before the storm.

The Office for National Statistics reported on Wednesday morning that annual consumer price rises fell from 3.3 per cent in March to 2.8 per cent in April.

That’s largely because government measures to lower energy costs kicked in, helping lower household bills, if only temporarily.

In response to fresh inflation data from the ONS, Chancellor Rachel Reeves said: “The war in Iran is not our war but one we will need to respond to, and the decisions I took in the Budget last year have kept inflation down as we deal with global instability.

“We have the right economic plan, and to change course now would risk our economic stability and leave working people worse off.

“We have already taken £117 off energy bills, frozen rail fares, and lifted the two-child limit, and over today and tomorrow I’ll set out the next phase of how we will support UK households.”

But economists fear the drop in inflation may be short-lived. Suren Thiru, chief economist at chartered accountants institute the ICAEW, said: “April’s slowdown is a final interlude before the inflation storm sparked by the Iran war hits as the Ofgem energy price cap reduction, aided by the chancellor’s cut to green levies, temporarily lowered the headline rate.

“This decline is probably the last inflation fall for this year as surging fuel and food prices will probably haul it close to 4 per cent this summer, while any escalation of the conflict in Iran opens the door to CPI hitting 5 per cent.”

Danni Hewson, head of financial analysis at AJ Bell, said: “The problem with today’s inflation data is that it is backwards looking and households struggling to stretch their budgets to fit the rest of the year are hyper aware that the picture painted by April’s numbers is a rose-tinted anomaly. Whilst motorists have already experienced a hefty rise in the price they’ve been paying at the pump, the true impact of the energy price shock created by the Iran war will take a few months to really work its way through the system.”

Rising prices are the top financial concern for UK households, recent surveys show.

S&P Global’s consumer sentiment index figure dropped to 42.1 in May, from 42.3 in April, the lowest level since July 2023 when inflation in the UK was soaring as a result of the Russian invasion of Ukraine.

On Tuesday, the UK unemployment rate rose to 5 per cent in the three months to March from 4.9 per cent. That could also be a sign of further job cuts to come as employers look to cut costs.

Ms Hewson said on inflation: “April’s figures are further skewed by the energy price cap, which includes a big dollop of government help as it shifts the burden of renewables onto general taxation and away from bills. Put simply, this is the calm before a summer storm with energy bills, food prices and a whole host of other costs expected to shoot up over the coming months. With wage growth slowing in a tepid labour market to boot, things are likely to feel tough for a lot of people still reeling from their last brush with high inflation.”