- 11 updates
Chief Secretary to the Treasury Danny Alexander has told ITV News the fall in inflation is a "welcome relief" for families who have been under financial pressures in recent years.
The rate of inflation unexpectedly fell to a two-and-a-half-year low last month, as declining oil prices started to filter through to the petrol pumps.
The average petrol price fell by 4.5p per litre between April and May to stand at 137.1p. Last year, the average petrol price rose 2p to 136.3p.
Inflation has fallen from 5.2% last September due to the waning impact of the VAT hike at the start of 2011 and falling energy, food and commodity prices, easing pressure on squeezed household incomes.
The underlying rate of Retail Prices Index (RPI) inflation fell to 3.1% in May, from 3.5% in April, the ONS said.
The headline rate of Retail Prices Index (RPI) inflation fell to 3.1% in May, from 3.5% in April, the Office for National Statistics (ONS) said.
The Consumer Prices Index (CPI) measure of inflation fell to 2.8% in May, from 3% in April, official figures showed today.
If the inflation figure remains unchanged today it would follow a sharp drop in April:
- In April CPI [Consumer Price Index] fell to 3% from 3.5% in March
- That's the lowest level since February 2010
- Inflation has fallen from 5.2% last September
- Previous falls are due to the reduced impact of the VAT rise in 2011
- Also falling energy and food prices and bill cuts from utility providers
Latest ITV News reports
The latest inflation figure of 2.8% has surpassed economists' expectations following falls in food and petrol prices.