As we've been reporting, a fall in the energy price cap at the start of April has been described as a key reason for the drop in the inflation figure for April.
So, let's recap - what exactly is the energy price cap?
It covers 29 million households in England, Wales and Scotland and is set by the energy regulator Ofgem every three months.
It fixes the maximum price that can be charged for each unit of energy on a standard - or default - tariff for a typical dual-fuel household which pays by direct debit.
In April, the new level set meant that an average household paying by direct debit for dual fuel (gas and electricity) would pay £1,690 a year - a drop of £238 from the previous cap.
We're just hearing from Chancellor Jeremy Hunt, who tells the BBC that today's figures are "encouraging", highlighting how they're now lower than the US or the Eurozone.
"For families worried about cost of living pressures it will be a real relief that inflation is falling to much more normal levels," he says.
He acknowledges that prices are still "much higher" than they were a year ago, but notes that this is "why we need to continue to stick to the plan".
Not the time for a victory lap, says shadow chancellor
PA MediaCopyright: PA Media
The shadow chancellor Rachel Reeves has just issued her response.
She's warning that while inflation is easing, now was "not the time for Conservative ministers to be popping champagne corks and taking a victory lap".
"After 14 years of Conservative chaos families are worse off," she says, adding how mortgage bills have risen and taxes are at a 70-year-high.
"It's time for change. Labour's first steps will deliver economic stability so we can grow our economy and keep taxes, inflation and mortgages as low as possible," she says.
Analysis
A welcome return to normality?
Faisal Islam
Economics editor
The freshly-announced
fall in the headline inflation rate is principally down to the sharp fall in
the energy price cap in April, which saw bills fall by 12%, or by over £200 a
year for a typical household.
That has driven the rate of inflation for the year to April down to 2.3% - the lowest rate since July 2021, after
which global inflation started to accelerate amid the supply chain crisis after
the world economy reopened from pandemic lockdowns.
The fall close to the
official Bank of England target of 2% marks a welcome return to normality, after a triple price shock that saw inflation peak at
generational highs above 11% in October 2022.
Breaking'Brighter days ahead', says prime minister
Inflation is "back to normal" and "brighter days are ahead", Rishi Sunak has said in response to the latest figures.
"Today marks a major moment for the economy, with inflation back to normal," Sunak says.
"This is proof that the plan is working and that the difficult decisions we have taken are paying off.
"Brighter days are ahead, but only if we stick to the plan to improve economic security and opportunity for everyone."
Digging into the numbers
Looking a bit closer at the latest figures from the Office for National Statistics, falling gas and electricity prices were a big part of the reason behind the sharp fall in April's inflation number.
It comes after the energy price cap was lowered by the watchdog Office of Gas and Electricity Markets (Ofgem).
According to the latest data, prices of electricity, gas and other fuels fell by 27.1% in the year to April - the biggest fall since records began being kept in 1989.
.Copyright: .
BreakingUK inflation falls to 2.3%
UK inflation fell to 2.3% in the year to April, official figures show.
It marks a sharp fall from 3.2% in March, according to the Office for National Statistics, and is the lowest level in almost three years.
Stay with us as we dig into the figures and latest analysis.
'The pressure is starting to ease a little bit’
BBCCopyright: BBC
Phil and Theresa are best known for their Turner’s Pies businessImage caption: Phil and Theresa are best known for their Turner’s Pies business
Apprentice contestant Phil Turner and his wife Theresa have been feeling the pinch of inflation and the cost of living over the past three years.
"I think it’s affected us just like it’s really affected everyone. I think for us the big hit was the interest rates going up, the cost of food and the cost of electricity.
"It just sort of eats into any disposable income that you do have and you find yourself having to penny pinch all the time," Phil tells the BBC.
The couple have two children and are best known for their Turner’s Pies business, which is a family-run bakery located in West Sussex.
Theresa says turning off the lights, making packed lunches, having meal plans and avoiding takeaways has helped them cut costs.
"With all the prices getting pushed up so much you just lose them little extra luxuries.
"So maybe on the weekend you might have had a little takeaway, we find ourselves having to cook," Phil adds.
They both feel like "the pressure is starting to ease a little bit" now, but Theresa says she doesn't hold "too much hope" that inflation will ease quickly.
The year started off with inflation rates at 4% in January.
They are now expected to fall to the lowest point this year.
The Bank of England has said it expects inflation will reach 2%“in the coming months” but predicts it will be 2.5% by the end of the year.
That means it still has some way to fall and economists are predicting we’ll see a figure of 2.1% today.
Analysis
A turning point?
Faisal Islam
Economics editor
Today’s expected fall should principally be down to the sharp fall in the energy price cap in April, which pulled down domestic bills.
A fall close to the Bank of England’s target of 2% would mark a welcome return to normality, alongside the return to stronger than expected economic growth in the first three months of the year.
The Bank has already said, however, it will be looking at underlying measures of inflation, for example in the service sector, which has been impacted by volatility in hotels, cafes and restaurants.
April also saw some increases in mobile and broadband bills, as well as the introduction of a double digit rise in the national living wage.
All of this could lead to the risk of inflation remaining persistent, and encourage the Bank of England’s nine-member interest rate setting panel to keep interest rates on hold.
The government is also likely to point to a sharp fall as evidence of a turning point after three years of price shocks. The shadow chancellor this morning has said there was nothing to celebrate in “lines on a graph” and that prices in the shops were still sky high.
What happened last month?
.Copyright: .
UK inflation dropped to 3.2% in the year to March, driven largely by slowing food price rises, making it the lowest rate since September 2021.
The cost of some items including meat, crumpets, chocolate biscuits, furniture and household items fell, but petrol and diesel prices rose.
The rate of inflation in March was slightly higher than economists expected, but experts have said that was unlikely to change expectations that the Bank of England will cut interest rates this year, potentially as early as June.
This month’s overall inflation figure looking back at April is expected to show a bigger drop as the lower energy price cap is taken into account, even as households' direct debits remain higher.
Inflation is the measure of how quickly prices for goods and services are rising (or in rare cases falling).
Let’s say a bottle of milk cost £1 a year ago, but is £1.05 today.
That would make the annual milk inflation rate 5%.The Bank of England says a series of economic shocks – including the Covid pandemic and war in Ukraine – have caused skyrocketing inflation in recent years.
It peaked at a 40-year high of 11.1% in October 2022.
One thing to keep in mind: things will continue to cost more than they did before, even if the inflation rate falls. A lower rate just means prices are rising more slowly.
Live Reporting
Edited by Johanna Chisholm
All times stated are UK
Get involved
What is the energy price cap?
As we've been reporting, a fall in the energy price cap at the start of April has been described as a key reason for the drop in the inflation figure for April.
So, let's recap - what exactly is the energy price cap?
It covers 29 million households in England, Wales and Scotland and is set by the energy regulator Ofgem every three months.
It fixes the maximum price that can be charged for each unit of energy on a standard - or default - tariff for a typical dual-fuel household which pays by direct debit.
In April, the new level set meant that an average household paying by direct debit for dual fuel (gas and electricity) would pay £1,690 a year - a drop of £238 from the previous cap.
'Signs encouraging' - Chancellor says
We're just hearing from Chancellor Jeremy Hunt, who tells the BBC that today's figures are "encouraging", highlighting how they're now lower than the US or the Eurozone.
"For families worried about cost of living pressures it will be a real relief that inflation is falling to much more normal levels," he says.
He acknowledges that prices are still "much higher" than they were a year ago, but notes that this is "why we need to continue to stick to the plan".
Not the time for a victory lap, says shadow chancellor
The shadow chancellor Rachel Reeves has just issued her response.
She's warning that while inflation is easing, now was "not the time for Conservative ministers to be popping champagne corks and taking a victory lap".
"After 14 years of Conservative chaos families are worse off," she says, adding how mortgage bills have risen and taxes are at a 70-year-high.
"It's time for change. Labour's first steps will deliver economic stability so we can grow our economy and keep taxes, inflation and mortgages as low as possible," she says.
A welcome return to normality?
Faisal Islam
Economics editor
The freshly-announced fall in the headline inflation rate is principally down to the sharp fall in the energy price cap in April, which saw bills fall by 12%, or by over £200 a year for a typical household.
That has driven the rate of inflation for the year to April down to 2.3% - the lowest rate since July 2021, after which global inflation started to accelerate amid the supply chain crisis after the world economy reopened from pandemic lockdowns.
The fall close to the official Bank of England target of 2% marks a welcome return to normality, after a triple price shock that saw inflation peak at generational highs above 11% in October 2022.
Breaking'Brighter days ahead', says prime minister
Inflation is "back to normal" and "brighter days are ahead", Rishi Sunak has said in response to the latest figures.
"Today marks a major moment for the economy, with inflation back to normal," Sunak says.
"This is proof that the plan is working and that the difficult decisions we have taken are paying off.
"Brighter days are ahead, but only if we stick to the plan to improve economic security and opportunity for everyone."
Digging into the numbers
Looking a bit closer at the latest figures from the Office for National Statistics, falling gas and electricity prices were a big part of the reason behind the sharp fall in April's inflation number.
It comes after the energy price cap was lowered by the watchdog Office of Gas and Electricity Markets (Ofgem).
According to the latest data, prices of electricity, gas and other fuels fell by 27.1% in the year to April - the biggest fall since records began being kept in 1989.
BreakingUK inflation falls to 2.3%
UK inflation fell to 2.3% in the year to April, official figures show.
It marks a sharp fall from 3.2% in March, according to the Office for National Statistics, and is the lowest level in almost three years.
Stay with us as we dig into the figures and latest analysis.
'The pressure is starting to ease a little bit’
Apprentice contestant Phil Turner and his wife Theresa have been feeling the pinch of inflation and the cost of living over the past three years.
"I think it’s affected us just like it’s really affected everyone. I think for us the big hit was the interest rates going up, the cost of food and the cost of electricity.
"It just sort of eats into any disposable income that you do have and you find yourself having to penny pinch all the time," Phil tells the BBC.
The couple have two children and are best known for their Turner’s Pies business, which is a family-run bakery located in West Sussex.
Theresa says turning off the lights, making packed lunches, having meal plans and avoiding takeaways has helped them cut costs.
"With all the prices getting pushed up so much you just lose them little extra luxuries.
"So maybe on the weekend you might have had a little takeaway, we find ourselves having to cook," Phil adds.
They both feel like "the pressure is starting to ease a little bit" now, but Theresa says she doesn't hold "too much hope" that inflation will ease quickly.
What do economists expect today?
The year started off with inflation rates at 4% in January.
They are now expected to fall to the lowest point this year.
The Bank of England has said it expects inflation will reach 2%“in the coming months” but predicts it will be 2.5% by the end of the year.
That means it still has some way to fall and economists are predicting we’ll see a figure of 2.1% today.
A turning point?
Faisal Islam
Economics editor
Today’s expected fall should principally be down to the sharp fall in the energy price cap in April, which pulled down domestic bills.
A fall close to the Bank of England’s target of 2% would mark a welcome return to normality, alongside the return to stronger than expected economic growth in the first three months of the year.
The Bank has already said, however, it will be looking at underlying measures of inflation, for example in the service sector, which has been impacted by volatility in hotels, cafes and restaurants.
April also saw some increases in mobile and broadband bills, as well as the introduction of a double digit rise in the national living wage.
All of this could lead to the risk of inflation remaining persistent, and encourage the Bank of England’s nine-member interest rate setting panel to keep interest rates on hold.
The government is also likely to point to a sharp fall as evidence of a turning point after three years of price shocks. The shadow chancellor this morning has said there was nothing to celebrate in “lines on a graph” and that prices in the shops were still sky high.
What happened last month?
UK inflation dropped to 3.2% in the year to March, driven largely by slowing food price rises, making it the lowest rate since September 2021.
The cost of some items including meat, crumpets, chocolate biscuits, furniture and household items fell, but petrol and diesel prices rose.
The rate of inflation in March was slightly higher than economists expected, but experts have said that was unlikely to change expectations that the Bank of England will cut interest rates this year, potentially as early as June.
This month’s overall inflation figure looking back at April is expected to show a bigger drop as the lower energy price cap is taken into account, even as households' direct debits remain higher.
What is inflation?
Inflation is the measure of how quickly prices for goods and services are rising (or in rare cases falling).
Let’s say a bottle of milk cost £1 a year ago, but is £1.05 today.
That would make the annual milk inflation rate 5%.The Bank of England says a series of economic shocks – including the Covid pandemic and war in Ukraine – have caused skyrocketing inflation in recent years.
It peaked at a 40-year high of 11.1% in October 2022.
One thing to keep in mind: things will continue to cost more than they did before, even if the inflation rate falls. A lower rate just means prices are rising more slowly.
Inflation expected to fall ahead of latest figures
Johanna Chisholm
Live reporter
Hello and welcome to our live coverage ahead of the UK’s latest inflation figures being released.
Economists are expecting another drop after inflation fell to 3.2% in the year to March, down from 3.4% the month before.
Today’s April figure is expected to fall to around 2.1% - another step closer to the Bank of England’s 2% inflation target.
We’ll bring you the all-important headline rate as soon as it’s released at 07:00 BST – plus reaction and analysis in its wake.