The Office for National Statistic (ONS) said CPI fell to minus 0.1% in April. It is the first time CPI has fallen negative since official records began in 1996 and the first time since 1960 based on comparable historic estimates.

The largest downward contribution came from transport services – notably air and sea fares, with the timing of Easter this year a likely factor, according to the ONS.

Tom Stevenson, investment director at Fidelity Personal Investing, said: “Britain has been flirting with deflation for some months now and, for the first time in 55 years, UK inflation has finally dipped into negative territory.

“While today’s figure may trigger headlines about us “turning Japanese”, the rebound in oil prices and stability of global food prices means we can expect the dis-inflationary period to be short lived. Households should enjoy the cheaper cost of living and real earnings growth while it lasts. Inflation is expected to pick up towards the end of the year.”