'We are not out of the woods yet'

Simon Webb, managing director of capital markets and finance at LiveMore:

“Inflation has been in double digit figures since last September but a fall, even if only by 30 basis points, is better than nothing.

“Let’s hope this is the start of the downward trajectory towards the BoE 2% target.

“But we are not out of the woods yet. Food inflation is still exceptionally high and the energy market is very volatile, so there is still price uncertainty.

“Yet the fall in the cost of petrol bodes well for inflation if it continues to drop.

“Looking to what this will do to the BoE base rate decision next month, it has said it will be data driven and the next meeting is still a number of weeks away. But it is safe to say the days of higher interest rates will be around for quite a while yet.”