Yesterday the ONS released April's inflation data.  It showed a surprise fall in the Consumer Price Index to 2.4%, from 2.8%. Core inflation was 2.0%. The main reason for the fall in the annual rate was the negative contribution from transport costs - motor fuels and air fares.  That suggests the fall in the oil price has worked its way to the consumer.

Real incomes are still falling, with average wage inflation at 0.8% per year.  But this fall does alleviate the pressure a little.  The Bank of England, in its Inflation Report published last week, did revise down its inflation forecasts. More on this later.