Consumer price index (CPI) inflation fell from 3.5 per cent to 3 per cent in April, according to the Office for National Statistics.

The ONS said inflation was last at 3 per cent in February 2010 and was last lower than this in December 2009.

The timing of Easter this year had a significant

impact, particularly regarding transport.

The ONS said the largest downward pressures ‘by far’ was air transport which saw fares rise by 7.4 per cent, compared to a 29 per cent rise a year ago. Sea transport fares rose by 4.2 per cent compared to 22.3 per cent a year ago.

Similar downward pressure came from alcohol, clothing and footwear and food and non-alcoholic beverages.

The largest upward pressures came from restaurants and hotels and housing and household services.

Restaurants and hotels rose by 1.0 per cent compared to 0.6 per cent a year ago while housing and household services rose by 0.9 per cent compared to 0.8 per cent a year ago.

Retail prices index (RPI) inflation, which includes mortgage interest payments, was 3.5 per cent, down from 3.6 per cent in March.

The figures will be good news for the Bank of England which had expressed doubt earlier this month about the time inflation was taking to fall.

The Bank is hoping for inflation to have fallen to its two per cent target by the middle of 2013, revised from the earlier forecast of the end of this year.