The rate prices are rising – known as the inflation rate – has fallen.
What it means: Economists and campaigners talk a lot about the cost of living 'squeeze'. It's when the price of stuff goes up really quickly, and wages don't rise to match it, which means you end up feeling like you have a lot less money in your pocket – what's known as your 'real wage'.
Prices had risen very quickly in the UK. After the Brexit vote, people were less confident in the UK economy, so the value of the pound fell. That made it a lot more expensive for businesses to buy things from overseas, so they had to put their prices up. People are hopeful this fall in the means the impact of Brexit is starting to calm down a bit.
Not everyone is celebrating though. The TUC – which represents working people around the UK – is arguing that this doesn't mean the crisis in the standard of living in the UK is over. It says the government needs to up its game and make sure there are enough better paid jobs for everyone in the UK.