Britain's inflation rate fell sharply in April to its lowest since August 2016 as retailers resorted to discounts in the face of the coronavirus shutdown, global oil prices slumped and regulated water and power tariffs slid, Reuters has reported.

The consumer price index dropped to an annual rate of 0.8 per cent in April from 1.5pc in March, official data showed.

Economists polled by Reuters had mostly thought the CPI would fall to 0.9pc.