Inflation has dropped to just 1.5 per cent - its lowest for four and a half years.
The drop in the annual rate of price growth in May from 1.8 per cent in April was helped by the first annual fall in food prices since 2006.
Economists believe the fall in the Consumer Prices Index (CPI) measure of inflation may give the Bank of England more flexibility in holding off interest rate rises this year - good news for housebuyers and those seeking to remortgage.
The new inflation figures were released by the Office for National Statistics today.
Thinking of moving house or remortgaging? There's been a hint that interest rates may rise later in the year.
The Bank of England, which is responsible for setting the rate, has indicated that we may see an increase in 2014 from the record low of 0.5 per cent.
Bank governor Mark Carney offered the clue in a keynote speech at the annual Mansion House dinner last night.
Many experts thought that rates wouldn't start going up until the first half of 2015.
We're still seeing strong demand for surveys from housebuyers as the property market stays steady.
New figures out today show prices rising by 0.7 per cent in May, according to the Nationwide.
That compares with a 1.2 per cent increase in April and a 11.1 per cent increase on last year.
Nationwide says that the average property price nationwide is now £186,512.
More welcome news as we head into the Bank Holiday weekend - the economy grew by 0.8 per cent in the first quarter of this year, according to new figures.
The Office for National Statistics confirmed the rise for January, February and March as it revealed that households are spending more and businesses are investing more.
It means that the UK is one of the world's fastest growing economies - with the housing market particularly strong.
Spring and early summer is one of the busiest times for househunters looking for a new homes.
The housing market is continuing to perform strongly, according to new figures out today from the Office for National Statistics (ONS).
It says that house prices increased by 8 per cent in the year to March nationwide.
That compared with a 9.2 per cent increase for the year to the end of February.
The ONS figures also showed 0.5 per cent fall in house prices from February to March - the first time property values have fallen month on month in a year.
The Bank of England today decided to hold interest rates at their record low of 0.5 per cent for another month.
Its Monetary Policy Committee (MPC) has also kept the Bank's bond-buying economic stimulus programme at £375bn.
The Bank has kept rates low for five years now amid fears that a rise would throw some businesses and homeowners into jeopardy, but also to avoid putting the brakes on the economic recovery.
McAndrew Martin are expanding with the launch of a land and new homes division to push forward developments across the south coast.
We will draw on the expertise of The Land Agent South Ltd to assist in the new service for developers and landowners.
The move comes as the housing market and the economy gain momentum with growth upgraded to 2.7 per cent for this year, the extension of Help to Buy and proposals for 200,000 new homes nationwide.