Figures from the Office for National Statistics (ONS) show CPI dipped to 1.7 per cent from 2.1 per cent in July, the largest monthly fall since December 2014.

It means inflation is now comfortably below the Bank of England’s 2 per cent target.

The ONS said the sharp decline was driven by falling computer game prices and “clothing prices rising by less than last year after the end of the summer sales”.

Steven Cameron, pensions director at Aegon, said: “UK consumers should feel a boost from this drop, especially those in work as the latest figures for total earnings growth show an annual increase of 4 per cent to July.”

However, he said the looming Brexit deadline and the threat of higher oil prices following the disruption in the Middle East make predicting future inflation trends “particularly hard”.

The Bank of England is due to announce its latest interest rate decision tomorrow.