UK inflation fell to the lowest level in nearly three years in April as energy prices continued to cool, according to official figures.

Consumer Prices Index (CPI) inflation slowed to 2.3% in April, down from 3.2% in March, according to the Office for National Statistics (ONS).

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

Grant Fitzner, the ONS’s chief economist, said: “There was another large fall in annual inflation led by lower electricity and gas prices, due to the reduction in the Ofgem energy price cap.

“Tobacco prices also helped pull down the rate, with no duty changes announced in the budget.

“Meanwhile, food price inflation saw further falls over the year. These falls were partially offset by a small uptick in petrol prices.”