Every month there's a new figure for inflation - it estimates how much prices are rising across all the goods and services in the economy.

As we've been reporting, in the 12 months to April 2023 the figure was 8.7%. That means things costing £1 in April 2022 cost more than £1.08 in April 2023.

But your own inflation figure will depend on what you spend your money on.

Our personal inflation calculator, built by the Office for National Statistics (ONS) in collaboration with the BBC, shows you what the inflation rate is for your household, and identifies the items in your household budget that have gone up the most in price over the past year.

Try our personal inflation calculator.

Cost of living battle far from overpublished at 07:49 British Summer Time 24 May 2023

07:49 BST 24 May 2023

Peter Ruddick
Business reporter

Much of economics is an expectation game.

Because the forecast was for inflation to dip to 8.2%, today's 8.7% figure will come as a disappointing surprise for many.

Core inflation - which is calculated by stripping out volatile movements in energy and food - actually went up.

Today's drop is almost entirely down to there being no repeat of last year's 54% rise in household gas and electricity prices. The statistics won't repeat that trick next month.

When you look at grocery costs it becomes clear the rate of price increases is proving surprisingly stubborn. The price of second-hand cars and cigarettes also putting upward pressure on the figures.

April's numbers are still statistically significant, but they will not have been felt by anyone doing a supermarket shop or struggling to pay their energy bills. The cost of living is still rising at more than four times the Bank of England's target.

There could well be some real-world impacts though. The figures may give interest rate setters pause for thought as they mull a - unlucky for some - 13th hike next month.

Image source, Getty Images

The Liberal Democrats have said the latest UK inflation figures are "no cause for celebration" and said Conservative ministers are "completely out of touch with the cost of food crisis".

Lib Dem Treasury spokesperson Sarah Olney said: "It is shocking that the chancellor refuses to act on food bills.

"These latest figures show the cost of shopping is through the roof, leaving families and pensioners to struggle on without any help."

She said the government needs to expand free school meals, give farmers more support with their energy bills and crack down on "profiteering by big supermarkets and food multinationals".

Nick Eardley
Chief political correspondent

The Government has made getting inflation down a key priority – and a key test.

The Treasury sees today’s figures as good news (although not as good as some had hoped).

Treasury officials think the government is on track to halve inflation – as Rishi Sunak promised at the start of the year.

But there is still concern, expressed by the chancellor this morning, about some key household costs like food continuing to go up quickly.

You can expect to hear more from opposition parties on the soaring cost of the weekly shop.

Labour argue this is hitting the poorest families the hardest – and accusing the government of lurching from “crisis to crisis” in the economy.

We have been getting some immediate reaction to that drop in the inflation rate from the chief economist for the Office for National Statistics (ONS).

Grant Fitzner tells BBC Radio 4's Today programme the drop is a good thing, but he urges caution.

"We are no longer in double digit territory," he says. "We have seen falls in bread, cereals, fish, milk, cheese, eggs, sugar, jam and honey - so that is positive."

But Fitzner adds the drop in inflation won't be reflected on supermarket shelves straight away. And as we keep saying - a drop in inflation doesn't mean prices are falling. It means they're rising less quickly.

"Let's not forget a lot of supermarkets have fixed contracts which can take six or 12 months to roll off, as those contracts expire you would expect them to be renegotiated at lower prices.

From the ONS:, external

• "Electricity and gas prices contributed 1.42 percentage points to the fall in annual inflation in April as last April’s rise dropped out of the annual comparison"
• "Food and non-alcoholic beverage prices continued to rise in April and contributed to high annual inflation, however, the annual inflation rate of food and non-alcoholic beverages eased, from 19.2% in the year to March 2023, to 19.1% in the year to April 2023"

We'll keep bringing you more analysis throughout the day

Image source, Reuters

Labour's shadow chancellor Rachel Reeves has taken aim at the Conservative government as it "refuses to properly tackle this cost of living crisis", following the latest UK inflation figures.

Prices rose by 8.7% in the year to April, down from 10.1% in March - but it doesn't mean prices are coming down, only that they are rising less quickly.

Reeves said: “As bills keep surging, families will be worried food prices and the cost of other essentials are still increasing.

“The reality is that never have people paid so much in taxes and got so little in return."

Jennifer Meierhans
Business reporter

The new inflation figure does not mean prices are falling - it means they're not going up as fast.

The rate of 8.7% means goods and services that cost you £100 last April now cost £108.70.

The fall in this April's inflation figure is down to the fact that the Office for National Statistics is comparing prices with April 2022, which was the first time energy prices shot up as a result of Russia's invasion of Ukraine.

That month household bills jumped from £1,200 a year to a whopping £1,900. Energy bills are even higher now, of course, at around £2,500 a year. But the difference compared with 12 months ago is smaller - hence the overall inflation rate is lower.

Image source, UK Gov

Chancellor Jeremy Hunt has responded to the UK inflation rate dropping to 8.7%

“The IMF (International Monetary Fund) said yesterday we've acted decisively to tackle inflation but although it is positive that it is now in single digits, food prices are still rising too fast.

Jennifer Meierhans
Business reporter

The UK inflation rate has dropped below 10% for the first time in eight months.

The rate at which prices rose in April compared to a year ago was 8.7%, according to figures just released by the Office for National statistics.

Forecasters had expected a figure closer to 8%.

Although this a big drop, it is still high because the government's target for inflation is 2%

The UK's overall inflation figure dropped to 8.7% in the year to April from 10.1% in March, according to the Office for National Statistics.

Kath Paddison
Digital producer, Wake Up to Money

Image source, Llyr Jones

A Welsh farmer has told us the last 12 months have been “challenging” with the price of feed, fertiliser, diesel and electricity increasing.

Llyr Jones, 44, runs Derwydd Farm in Corwen has a flock of 32,000 hens and he also raises cattle.

He told 5 Live's Wake Up To Money the Ukrainian war has added to the pressures because he buys feed from global markets.

But Jones says there’s “a slight glimmer of hope for the next few months” because of the cost of fuel and diesel are starting to fall.

The Bank of England has a target to keep inflation at 2%, but the current rate is still more than five times that.

Its traditional response to rising inflation is to put up interest rates.

This makes borrowing more expensive, and can mean some people with mortgages see their monthly payments go up. Some saving rates also increase.

When people have less money to spend, they buy fewer things, reducing the demand for goods and slowing price rises.

Image source, .

So, what are things currently like for those running a business?

Roni Savage is the Federation of Small Businesses construction policy chair and has been telling BBC Radio 5Live's Wake Up To Money that things are still "very difficult" across the construction sector.

"We are feeling the pinch," she says. "In 2022 we saw an increase of costs by 15%. And coupled with an increase in interest rates, we have struggled a bit more."

Roni says she doesn't have much confidence in the Bank of England as she feels they have failed to get a handle on the situation.

"They are learning every day and that is the issue," she says.

Inflation is the increase in the price of something over time.

When energy bills for businesses and suppliers go up, it can lead to the prices for customers going up too, increasing the cost of living.

The soaring cost of energy has been a key factor driving the UK’s high inflation rate in recent months. Oil and gas were in greater demand as life got back to normal after Covid.

At the same time, the war in Ukraine meant less was available from Russia, putting further pressure on prices.

Image source, .

Faisal Islam
Economics editor

The official numbers for inflation should start to drop sharply in the numbers just about to be released.

This will be at the same time, a massive drop, and still incredibly high.

And it is worth restating that a slower rate of inflation does not mean prices actually coming down. It means that prices will stop going up by quite so much.

The cause is the fact that energy price rises are slowing from the extreme hikes seen a year ago.

Exactly where it lands is a matter of key importance.

There are fears, that even as energy price rises moderate, food price rises are proving far more stubborn.

The International Monetary Fund (IMF) yesterday warned of “premature celebration”, as in history, when inflation gets to double digits, it tends to linger in the system not for weeks or months, but for years.

So while we expect progress in the right direction, it may not feel like that in people’s shopping baskets for some time to come.

And the numbers will have a key influence on whether further interest rate rises are announced by the Bank of England.

Jamie Whitehead
Live reporter

Good morning and welcome along as we find out the UK’s latest inflation rate.

At 07:00 BST, we’ll get the latest figures from the Office for National Statistics on how fast prices are rising in the UK.

Inflation, which measures the rate prices go up, fell to 10.1% in the year to March from 10.4% in February. Despite the fall, food prices continued to rise at their fastest rate for 45 years.

Inflation was expected to fall below 10% in March, but soaring food prices meant it fell by less than expected. The last time the UK inflation rate was below 10% was August 2022, when it slipped to 9.9% from July's 10.1%.

I’m here with Thomas Mackintosh, Emily McGarvey and Jen Meierhans and our business colleagues to explain exactly what it all means for you.