Official data from the Office for National Statistics showed that inflation dropped to 0.5% for May, down from 0.8% in April, as petrol prices continue to fall.
The figures come despite the blunderbuss of stimulus initiatives from the Bank of England and the Treasury to help the population get through the coronavirus shock.
ONS Deputy National Statistician for Economic Statistics Jonathan Athow said: "The growth in consumer prices again slowed to the lowest annual rate in four years. The cost of games and toys fell back from last month’s rises, while there was a continued drop in prices at the pump in May, following the huge crude price falls seen in recent months."
“Outside these areas, we are seeing few significant changes to the prices in the shops.”
It comes as fuel prices tumbled by 16.7% in May – the biggest fall on record – while energy costs dropped 7% and clothing and footwear price tags fell 3.1% as retailers resorted to heavy discounts amid the lockdown.
The BoE's target is 1% to 3% which it is likely to miss for many months to come.
In April inflation hit its lowest level in four years as coronavirus lockdown sent petrol prices crashing and cut the cost of items such as clothing and secondhand cars.
Neil Birrell, chief investment officer at Premier Miton, said: “Even though the long term impact of government and Bank of England policy might be inflationary, there will be no signs of it in the current environment as the May data shows, which was in line with expectations. Inflation is not something that is going to worry the Bank for some time, it will be more concerned about growth.”
