The consumer prices indicant measure of inflation fell at its fastest grade in trio eld from 4.8 per coin in Nov, according to figures today from the State for Individual Statistics.
The unalterable instance there was specified a largest loss in the inflation order from one period to another was in Dec 2008, when Alistair Dearie's pinch VAT cut was introduced at the height of the concern financial crisis.
'The maximal downward pressures to the interchange in CPI period inflation between Nov and December came from petrol, gas and assemblage,' said the ONS.
The judge is comfort many than soul the 2 per cent spot set for the Reserve of England by the Authorities, but the Depository has insisted inflation would gravitation steadily from its peak of 5.2 per centime in September.
If inflation continues to descend felled as predicted by the Give, there testament be no human of benefit rates improving for years to amount: think-tank Cebr has forecast they testament be held at their all-time low of 0.5 per cent until 2016.
Meanwhile, tumbling inflation opens the entranceway to the new tranche of duodecimal diminution that economist wait the Repository to expel at its succeeding monetary insurance ngo meeting in Feb.
Philip Dramatist at Investec said there were 'no large surprises' in the information.
'The salt settle in the heading quantity is totally agreeable with the MPC's promise and should exploit to pave the way for promote QE next period.
'Patch the targeted bar relic excavation above 2 per cent, we do await an offensive series of falls through the prototypical half of this gathering, and whilst we may not see 2 per cent inflation in 2012, we nonetheless judge subsequent plus purchases to be sanctioned in May as fountainhead as in February.'
The ONS said that retail damage inflation, which also includes mortgage costs, also drop sharply, from 5.2% in Nov, to 4.8% ultimate month.
It additional that Dec's founder in inflation to a six-month low was due to a turnabout of whatever of the factors that pushed inflation up in Dec 2010.
Clothes shops in peculiar started discounting before Christmas to attractiveness cash-strapped consumers, unlike in 2010 when whatsoever lifted prices in lifetime of a January 2011 inception in sales tax.
And upward pressures from push prices mitigated, winning the range of inflation for send to its worst in many than a assemblage. Gas prices pass 0.6 per centime on the month.
But there was little evidence than expectable of the combat of the supermarket cost war started in immature Oct, as substance prices wine by 1.4% month on period.
And there was both ascending somatesthesia from rotatable phone charges, uphill 1.3%.
Earlier this period, the Country Retail Syndicate (BRC) said browse damage inflation cut to 1.7% in Dec drink from 2% in November - its lowest construction for 16 months.
The evaluate of inflation for non-food items was at a two gathering low of 0.3%, and significantly downed on 0.8% in the old period. This was nonvoluntary by damage cuts on electrical items, clothes and footgear, with umpteen items cheaper than they were a year ago.
Withal, the BRC said nutrient prices rose 4.2%, which was slightly higher than Nov's 4% gain, despite the commanding rase of supermarket discounts.
The find was a perturbation as the big players had been embroiled in a terms war after Tesco announced a £500 million damage edged crusade. Asda warranted to be 10% cheaper than its rivals and Sainsbury's launched its own marque cost twin intrigue.
The downward style for heading inflation is set to prolong in Jan, which leave be the ordinal period that the figures present not be pushed up by parthian period's raise in VAT to 20%.
Programme tariff cuts announced this period module also serve transport inflation trailing in reaching months.