ANNUAL UK consumer prices index inflation tumbled from 2.8% in March to 2.4% in April – a steeper drop than had been forecast – official figures have revealed.

News of the first fall in annual CPI inflation for seven months, in figures published yesterday by the Office for National Statistics, will come as a minor relief to households that have been suffering falling real incomes as price rises far outstrip pay increases. However, the drop will ease only slightly the painful squeeze on real incomes.

The fall in the annual CPI inflation rate, to its lowest since last September's 2.2% figure, was also viewed by economists as helping pave the way for further monetary stimulus from the Bank of England to assist the struggling UK economy.

The City had predicted a drop in annual CPI inflation in April, but only as far as 2.6%. At 2.4%, annual CPI inflation remains above the 2% target set for the Bank by the Treasury.

Motor fuels and air fares exerted by far the largest downward pressure on the annual CPI inflation rate between March and April, the ONS said.

Petrol and diesel prices fell by 2.1p and 3.9p-a-litre respectively, overall, between March and April. This was in contrast to respective month-on-month rises in petrol and diesel prices of 3.2p and 2.1p-a-litre in April last year. The ONS noted that the sterling price of a barrel of Brent crude had fallen by 6.8% between March and April this year.

Air fares, overall, fell by 6.4% between March and April. This was in contrast to a 7.4% month-on-month rise in April 2012. Easter fell earlier this year than in 2012.

The ONS said the only notable upward influence on annual CPI inflation between March and April came from the food and non-alcoholic beverages category, with a month-on-month rise in prices of 0.7% contrasting with a 0.1% dip between March and April 2012.

This upward effect came from most types of foodstuff, the ONS said. It cited a recovery in vegetable prices, following sales and reports of cold weather in the UK impacting on crop production.

Annual UK inflation on the old all-items retail prices index measure dropped from 3.3% in March to 2.9% in April – also the lowest rate since September.

Stephen Jones, chief investment officer at Edinburgh-based fund manager Kames Capital, said: "There has been evidence of a more deflationary tone in global economic data over recent months. Measures of European inflation have surprised to the downside, perhaps to be expected given the weak demand environment and poor economic health of the eurozone. Even in the US, where headwinds from fiscal policy have had a slowing effect on activity, but where growth and demand has still been sustained at low but positive levels, inflation has been subdued."

He added: "When UK inflation data is coming in below expectations, after so many surprises to the upside in the past, then we know the trend to lower inflation seen elsewhere has some power."

Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "Any easing back in inflation is welcome news for recovery prospects as it lifts consumers' purchasing power and gives the Bank of England more room for manoeuvre on monetary policy. Even so, consumer price inflation of 2.4% in April is still putting an appreciable squeeze on households' purchasing power given average weekly earnings fell 0.7% year-on-year in March and were up a mere 0.4% year-on-year in the three months to March."