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The rate of inflation in Britain fell to 2.5 per cent in May, as four interest rate rises in ten months took effect.

May's consumer price index (CPI) inflation figures from the Office for National Statistics (ONS) follow readings of 3.1 per cent and 2.8 per cent in March and April.

Last month the Bank of England's monetary policy committee voted to raise base rates a quarter of a per cent to 5.5 per cent.

The government's CPI target figure is two per cent, with the Bank's governor Mervyn King required to write a letter of explanation to chancellor Gordon Brown explaining why inflation had exceeded three per cent – the first time in ten years – in March.

But the level of inflation reported today is the lowest in seven months.

Accompanying today's CPI announcement is the news that retail price index (RPI) inflation – which includes mortgage interest payments – fell to 4.3 per cent in May; down from 4.5 per cent in April.

The ONS explains that lower gas and electricity bills were behind today's fall, with shrinking food and clothing prices also contributing.

As with last month's figures the biggest upward factor came from transport costs, especially air travel.

"As an internationally comparable measure of inflation, the CPI shows that the UK inflation rate is above average for the European Union as a whole," an ONS spokesperson commented.

"The provisional inflation rate for the EU 27 in April was 2.2 per cent, compared with the UK rate of 2.8 per cent for the corresponding period."