Inflation fell back to its lowest level for more than a year last month as a drop in energy prices offset soaring fuel costs, but fears are mounting over a looming cost-of-living squeeze caused by the Iran war.The Office for National Statistics said Consumer Prices Index inflation fell to 2.8% in April, down from 3.3% in March - and the lowest level since March 2025.Chancellor Rachel Reeves is expected to outline a package of cost-of-living support this week in response.

Inflation fell back to its lowest level for more than a year last month as a drop in energy prices offset soaring fuel costs, but fears are mounting over a looming cost-of-living squeeze caused by the Iran war.The Office for National Statistics said Consumer Prices Index inflation fell to 2.8% in April, down from 3.3% in March - and the lowest level since March 2025.Chancellor Rachel Reeves is expected to outline a package of cost-of-living support this week in response.