The Consumer Price Index saw a drop for the first time since September 2009 from 3.5 per cent to three per cent. This beat analysts' predictions of a fall to 3.1 per cent.
The Office for National Statistics said a decrease in average gas bills also helped the inflation levels to fall.
Retail price inflation was steady at 3.7 per cent.
The Ernst & Young ITEM Club predicted that inflation will near the two per cent target by the end of the year.