The rate slowed to 3.9% in November, the lowest level since September 2021, official figures show.
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The slowdown comes as most economists had been expecting inflation to fall to 4.3% last month.
It also means that inflation has not decreased, but rather slowed - this is known as disinflation.
Disinflation is a slowdown or a fall in the annual rate of price inflation. This means consumer prices are still increasing, but just more slowly.
The Office for National Statistics said the biggest cause of slowing inflation was a fall in the price of fuel, food and household goods.
Now, the average cost of unleaded petrol has fallen to 142.57p per litre, its lowest level in two years, according to the RAC.
And, food prices have fallen from a 45-year high of 19.6% in March to 4.2% last month.
But, whilst it’s good news that inflation has fallen, it’s worth remembering that earlier this month, The Bank of England maintained interest rates at 5.2% - the highest rate in 15 years - in a bid to control inflation, pushing up borrowing costs for millions.