Inflation has fallen below the Bank of England's 2% inflation target for the first time in four years.
According to the Office for National Statistics (ONS), inflation measured by the consumer price index was 1.9% in January 2014, down from the reported 2% in December last year.
The news might bring a little cheer to cash-strapped voters who have seen wages stagnate while prices have risen during the past few years.
The ONS said that a small change in the CPI could indicate larger underlying changes in the price of goods and service but that this was not the case over the last month.
However, price movements in furniture and household goods combined with recreational goods and services were cited as the main reason for the inflation slow down, added the ONS.
From a longer term perspective, in 24 of the previous 27 months, prices in housing, electricity, water and gas had been the largest contributors to inflation and currently account for a quarter the current rate, said the ONS.
Reacting to the latest inflation figures, Alex Edwards, head of the corporate desk at UKForex, a financial services firm, said: "UK CPI printed weaker than market forecasts this morning at 1.9% y/y vs. 2.0% y/y. It's been a great excuse for investors to unwind some long GBP positions built up over the last week.
"We're likely to see GBP remain on the back foot for the rest of the day, but with UK unemployment and MPC minutes due tomorrow morning, we think we'll see support come in at 1.66 y/y in the near-term."