Inflation last month slowed to its lowest level since the beginning of last year, but prices are still rising faster in the UK than any other leading developed country when the effect of December's cut in value added tax is excluded.

The consumer prices index, which stood at 2.9 per cent in the year to March, eased to 2.3 per cent in April, its lowest level since January 2008 and the first time in six months it has been beneath economists' expectations.