The Retail Prices Index measure of inflation which includes mortgage repayments fell to 3.5% from 3.6% in March.
Sir Mervyn King, governor of the Bank of England, said CPI inflation would remain abouve the 2% target for the next year of so owing to a “storm” in the eurozone creating a threat to UK recovery.
This is the first time in this Parliament that Sir Mervyn has not had to write an open letter to Chancellor of the Exchequer, George Osborne to explain why the 2% target was missed.
An open letter is triggered if the CPI rate remains above 3% or below 1% for three months in a row.
Jason Conibear, director of forex specialists Cambridge Mercantile Group, said: “Prices are once again moving in the right direction but we will need to see far lower CPI over a period of months before consumers come out of their shells.
"Last week the Bank of England said inflation would be hitting target a lot later than expected, and there's no doubt we can expect a bumpy ride on the way down.
"Once again there will be talk of further QE as lower inflation gives the Bank slightly more room for manoeuvre. But at this stage that may be seen as premature.”
