The Consumer Prices Index unexpectedly fell to 2.8 per cent in May according to the Office for National Statistics.

This is its lowest in two and a half years, and comes as a result of slower price increases for food and fuel.

It is likely to strengthen the chance of more stimulus from The Bank of England, as fears over the euro debt crisis mount.

Vicky Redwood, Chief UK Economist at Capital Economics, said: "The further fall in UK inflation in May is a nice surprise, given that we and the consensus had expected it to hold broadly steady.

"Headline inflation will probably stay around this level in June, but it should then start to fall more quickly and we still think it could be below two per cent before the end of the year."

British inflation has been above The Bank of England's two per cent target since December 2009, and its slow fall earlier this year had made some central bankers reluctant to inject more cash into the economy despite signs that the recovery had stalled.

Between April and May, average consumer prices dropped by 0.1 per cent - the first fall between these two months since records began in 1996.