Hunt insists he can halve inflation as core prices hit record highs

Inflation has fallen into single digits for the first time in eight months as the rising cost of living slows after last year’s energy crisis.

The consumer prices index dropped to 8.7pc last month from 10.1pc in March, according to the Office for National Statistics.

It is the first time it has been below 10pc since August last year and leaves inflation at its lowest level since March last year.

However, economists had forecast that the annual CPI rate would drop to 8.2pc in April, moving further away from October’s 41-year high of 11.1pc.

The fall, which is the largest since the Bank of England began raising interest rates to tackle the cost of living crisis in 2021, comes as last April’s sky high rise in energy prices drops out of the calculation.

The energy price cap jumped higher a year ago as wholesale prices rocketed after Russia’s invasion of Ukraine.

Last April, the energy price cap soared by 54pc to £1,971, but this year the Energy Price Guarantee (EPG) has been kept at £2,500 since last October.

However, food and drink price inflation remains above 19pc, falling a sliver from 19.2pc in March to 19.1pc, near its highest level in 45 years.

Core inflation, which strips out volatile food and drink prices, rose to 6.8pc in April – its highest level since 1992.