Retail Prices Index inflation, which includes mortgage interest payments, also fell to 5.4% from 5.6%.
Falls in the price of food, air transport and fuel helped to push the inflation rate lower.
Despite the drop, the rate still remains well above the Bank of England’s target of 2%.
The Bank said it expects the rate of inflation to drop in 2012 as prices fall back and the impact of the government’s increase in VAT is no longer felt.
A Treasury spokesperson said: “These are difficult times for households as prices continue to be affected by conditions in the global oil and gas markets.”
