The fall was predominantly due to the collapse of the price of oil, which has fallen from nearly $150 to around $50 dollars since the summer.
Food prices continued to rise at a double-digit rate, however easing the fall and resulting in a higher-than-anticipated figure.
The rate of inflation is now at its lowest level since June and tipped to continue to fall as the economic climate weakens.
Bank of England concerns have now moved from inflation to deflation. In the US the rate of inflation has fallen to just 1.1% in November, down from 3.7% the previous month, fuelling fears of deflation.
UK inflation falls as oil prices collapse
UK inflation has fallen to 4.1%, a higher figure than expected, but indicative of the continuing fall of inflationary pressures on the economy.
