UK inflation has fallen to its lowest level since October 2009, to well below the Bank of England’s target rate of two per cent.

Official figures put headline consumer price inflation at 1.6 per cent in the year to April, down from 1.7 per cent in the 12 months to March.

Among the biggest upward pressures on prices was motoring costs, particularly fuel, while deflationary pressure came from furniture, household goods and clothing.

But house prices remain the biggest influence on rising costs, with the typical London home climbing in value by 17.7 per cent in the last year.

Across the UK the figure is 9.1 per cent.

On Monday the EY ITEM Club said UK average wages could rise faster than inflation this month, going up 1.7 per cent in the last 12 months.