The announcement was made at 7am this morning (Picture: Getty)

Inflation in Britain has fallen to 7.9% in the year up to June, according to the Office for National Statistics (ONS).

This is a bigger drop than expected – down from May’s 8.7% – with most analysts forecasting a figure of 8.2% this month.

It is the lowest reading since March 2022, indicating that price rises may finally be slowing down.

But experts have warned the nation is ‘far from being out of the woods’ amid the cost of living crisis.

ONS chief economist Grant Fitzner said after today’s announcement: ‘Inflation slowed substantially to its lowest annual rate since March 2022, driven by price drops for motor fuels.

‘Meanwhile, core inflation also fell back after hitting a 30-year high in May.

‘Food price inflation eased slightly this month, although it remains at very high levels.

‘Although costs facing manufacturers remain elevated, especially for construction materials and food items, the pace of growth has fallen across the last year, with the overall cost of raw materials falling for the first time since late 2020.’

Energy security secretary Grant Shapps said inflation remained ‘far too high’ but that it was ‘moving in the right direction’.

Speaking to Times Radio, he said: ‘It is good to see the inflation figures coming down as much as that.

‘We’ve been doing a lot of things to try to support people through this period of high inflation caused by the shock in energy prices.

‘It is good to see that that is starting to pay dividends with inflation coming down to 7.9%.

‘It is still far too high and a big cost, but nonetheless moving in the right direction now.’

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‘We are far from being out of the woods.’