Inflation fell to 4.1 per cent in November from 4.5 per cent in October, the Consumer Prices Index showed.

Falling transport costs fuelled the reduction but food and non-alcoholic drinks created the greatest upward pressure.

The annual rate of inflation of fruit and vegetables climbed steeply in November, the Office for National Statistics reported.

The impact was partly offset by prices of milk, cheese, eggs bread and cereals that rose by less than a year ago.

The falling CPI inflation rate opens the door for a further interest rate reduction. However concern is fast shifting from the perils of inflation to the threat of deflation.

Retail Prices Index (RPI) inflation fell to three per cent in November from 4.2 per cent in October.

Deflationary conditions would likely hit retailers as consumers held off spending in expectation of further price falls.

Capital Economics chief European economist Jonathan Loynes said: “November’s consumer prices figures represented another step along a path which is likely to lead to the first bout of deflation in the UK economy for almost half a century."