Live PMQs today as general election speculation continues

The Prime Minister said UK inflation had returned to normal in a “major milestone” for the country as it hit its lowest level in almost three years despite falling by less than economists had expected.

Consumer price index (CPI) inflation fell to 2.3% in April, down from 3.2% in March, according to the Office for National Statistics (ONS).

It is the lowest level since July 2021, when inflation was recorded at 2% – the Bank of England’s target level.

But the drop was smaller than expected, as economists had predicted CPI would fall to 2.1% in April, just short of the Bank’s target.

Some experts said this could come as a blow to the chances that the Bank’s policymakers will feel confident to cut interest rates next month.

The latest data means prices are continuing to rise across the country, but at a much slower pace than in recent years, when households and businesses were strapped at the height of the cost of living crisis.

Speaking in Downing Street, Rishi Sunak said the drop in inflation was “a major milestone” but admitted there was “more work to do”.

The Prime Minister said: “Thanks to everyone’s effort and resilience, today we have reached a major milestone and inflation has returned to normal.

“This is an important moment for our country, for the economy, and it shows that our plan is working.

“While I know people are just starting to feel the benefits and there is still work to be done, I hope this gives people confidence that if we stick to the plan, brighter days are ahead.”

He added that “these things don’t happen by chance.”