What does the fall in inflation mean for families and the wider economy?

Inflation dropped to 10.1% in March after a surprise rise took it to 10.4% in the previous month.

The rate of inflation dipped last month, according to official figures (Aaron Chown/PA) (PA Wire)

The rate of inflation dipped last month, according to official figures, offering hope to households that recent pressure on budgets could begin to ease.

Inflation fell back to 10.1% in March, returning to decline after a surprise rise to 10.4% in the previous month.

Nevertheless, the decrease was less than most economists had expected and will provide scant relief for households, who witnessed another surge in the price of everyday essentials such as bread.