Inflation in the UK slowed in April as energy and food prices continued to decline, according to figures recently released by the Office for National Statistics.

The Consumer Prices Index (CPI) fell to 2.3% from 2.9% in March and the Retail Prices Index (RPI), fell further to -1.2% from -0.4%, the biggest drop since records began over sixty years ago.

The main difference between the two rates is that RPI includes mortgage costs, which have dropped significantly due to the Bank of England cutting interest rates numerous times over the past year.

Many companies use the RPI rate as the starting point for wage bargaining, so the decline may result in employees seeing their wages frozen or cut.