The rate of inflation in the UK has fallen 2.3% in the year to April, above the Bank of England's 2% target, but its lowest level in almost three years.

It marks a sharp fall from the 3.2% in the year to March, mainly down to the price of electricity, gas and other fuels falling 27.1%, the biggest since records began.

Rishi Sunak has assured people "the plan is working" after the figures were released this morning, though shadow chancellor Rachel Reeves has hit out at the Tory government, saying this is "not the time for Conservative ministers to be popping champagne corks and taking a victory lap".

The Prime Minister said: "Today marks a major moment for the economy, with inflation back to normal.

"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."

Meanwhile, government borrowing as at the fourth highest level since 1993, when records began.

It borrowed £20.5bn in April, more than a billion more than the Office for Budget Responsibility (OBR) predicted.

A treasury spokesperson said: "We rightly protected millions of jobs during Covid and paid half of people's energy bills after Putin's invasion of Ukraine sent bills skyrocketing - but it wouldn't be fair to leave future generations to pick up the tab.

"That's why we must stick to the plan to get debt falling. The economy is turning a corner."

FTSE 100

The UK's flagship share index, the FTSE 100, was down 44-points at 8,372 shortly after opening this morning.

Brent crude oil futures were down 0.80%, trading at $82.22 a barrel.

Companies reporting today

  • 4imprint - AGM Trading Statement
  • British Land Company - Full Year Results
  • Close Brothers - Q3 Trading Statement
  • Empiric Student Property - Trading Statement
  • HICL Infrastructure - Full Year Results
  • IntegraFin - Half Year Results
  • Marks and Spencer - Full Year Results
  • Mitchells and Butlers - Half Year Results
  • NVIDIA - Q1 Results
  • RS Group - Full Year Results
  • Severn Trent - Full Year Results
  • SSE Plc - Full Year Results

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