Millions of households are benefiting from a fall in the cost of living as mortgage bills drop, a study has disclosed.

Nearly one in three households, or eight million, is currently experiencing price falls, or deflation, according to the Institute for Fiscal Studies.

Those enjoying the biggest drop include home owners with mortgages, couples with children, householders aged 30 to 39 and the richest 20% in the country.

However, millions of other households, including the elderly, are struggling to make ends meet.

Daily Telegraph