The consumer price index fell to 1.5 per cent in May, down from 1.8 per cent in April, according to the Office for National Statistics.
The fall means CPI stays below the Bank of England’s target of 2 per cent for the sixth consecutive month.
Falls in air fares were the largest contributor to the drop. The ONS says price movements for motor fuels prevented a further dip in inflation.
Capital Economics UK economist Samuel Tombs says: “Looking ahead, it still looks likely CPI inflation will ease further, to as low as 1 per cent by the end of the year.”
The figures come after BoE governor Mark Carney warned a rise in interest rates could come sooner than markets expect in his Mansion House speech in the City last week.