Inflation in the UK fell further than anticipated in October thanks to drops in the cost of food and fuel.

Inflation fell to 4.5% last month from September’s 5.2% rate – marking the largest monthly drop since records began in 1992.

The Office of National Statistics said the falling price of petrol was the main factor behind the dip, having slipped by around 7% over the last month.

However, annual food prices inflation also fell significantly, according to the consumer price index, down from 12.7% to 11.2%. Inflation on meat prices fell even more sharply, down from just over 19% in September to 14.3% last month.

“Inflation is poised to drop like a stone over the coming months due to sharply lower oil and commodity prices, waning food prices, favourable base effects and rapidly diminishing underlying inflation,” said Howard Archer of analysts Global Insight.

“We expect annual consumer price inflation to fall to just 0.5% by the end of 2009. Furthermore, a brief period of deflation is possible.”