The Britain's consumer prices index (CPI) fell to 1.2 percent in the year to September 2014, marking a five-year low, data from the Office for National Statistics (ONS) showed Tuesday.
The inflation rate fell from 1.5 percent in August. Falls in transport costs and prices for a range of recreational goods provided the largest contributions to the slowdown in the rate of inflation between August and September, said ONS.
Housing and household services accounted for a third of the rate of inflation in the year to September, said ONS. If falling food and motor fuel prices were excluded, the rate of inflation would be a third higher.
CPIH, an inflation gauge include consumer prices and owner occupier's housing costs, increased 1.2 percent in the year to September 2014, down from 1.5 percent a month previous, data also showed.
September's sharp fall in Britain consumer price inflation provides additional support to committee members of the Bank of England (BoE) arguing that there is no hurry to raise interest rates, said Samuel Tombs, senior British economist at Capital Economics.
"CPI inflation looks set to dip below 1 percent later this year. The continuation of below-target inflation may not be enough on its own to prevent the BoE from raising interest rates from their emergency low levels next year, it should significantly limit the speed at which they rise," said Tombs.
Martin Beck, senior economic advisor to the EY ITEM Club, said: "Inflation has dropped to a five-year low in September largely due to an intensified food price war. With core inflation also slowing, it appears that the low inflation environment is here to stay."
He added that bolstered by falling oil prices, there was little sign of any inflationary pressures in the horizon. He predicted inflation could dip below 1 percent around the turn of the year./.