Inflation relief means Rishi Sunak’s targets no longer seem so hard to hit

Annual rate is still four times the government's objective but is below level expected by financial markets

• UK inflation falls to 7.9%
• Q&A: how high inflation affects everyone from borrowers to savers

Rishi Sunak and Jeremy Hunt will be breathing a big sigh of relief at the latest inflation figures. It is too soon to say Britain's cost of living crisis is over but the prime minister and chancellor will be hoping the sharp drop in the annual rate of price increases in June is a watershed moment.

On the face of it, there is not a great deal to crow about. At 7.9%, the annual increase in the cost of living as measured by the consumer prices index is still running at four times the government's 2% target.