Inflation slows as food prices remain competitive

INFLATION slowed last month as it slipped back to 0.3%, after it had reached its highest point for 18 months in March.

The Consumer Prices Index peaked at 0.5% two months ago, after a slow climb over five months. 2015 was a year of historically low inflation, with the rate being at or around zero for much of the year.

From late 2015, the rate began to increase gradually from close to zero. The drop in April 2016 is the first fall since September 2015.

The Office for National Statistics said: “Similar to 2015, the largest downward pulls on inflation continue to come from prices for food and non-alcoholic beverages, and transport.

“These downward pressures have been counterbalanced by an upward pull from price movements for other goods and services, most notably restaurant and hotel bills, and education costs such as university tuition fees.”