13 August 2013 Last updated at 04:42 ET
The rate of consumer prices index (CPI) inflation fell to 2.8% in July, down from 2.9% in June, according to the Office for National Statistics (ONS).
The Bank of England's target for CPI inflation is 2%.
The rate of retail prices index (RPI) inflation also fell, to 3.1%, from 3.3% in June.
The drop in the rate of inflation came from lower air fares, discounting by clothing retailers and a reduction in the cost of leisure and cultural goods.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23678274#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
