British inflation slowed less than expected in November, official data showed yesterday, but is still forecast to fall sharply soon because of a cut in sales tax and tumbling fuel prices.

The Office for National Statistics said consumer prices fell 0.1 per cent last month to bring the annual rate down to 4.1 per cent from 4.5 per cent in October.

That was the lowest rate since June but still more than double the Bank of England's two per cent target and above forecasts for a reading of 3.9 per cent.

It means the Bank of England will have to write a letter to finance minister Alistair Darling explaining why CPI inflation has held more than one percentage point above the target.

However, policymakers including Mr Darling are convinced inflation is no longer a threat and recession poses the far greater danger.

As such, the data are unlikely to alter expectations of further aggressive interest rate cuts in the coming months.

"The CPI figures are little firmer than expected. The main reason seemingly being another sharp increase in food prices on the month," said Philip Shaw, economist at Investec.

"Nevertheless, the UK is still in the very early stages of what is going to be a very steep decline in inflation that will see both the CPI and RPI in negative territory for much of next year.

"Our forecast remains that the UK bank rate will fall below one percent in the second quarter of next year."

The Bank of England has already slashed rates by three full points to two per cent since October.

The ONS said the biggest downward effect on CPI came from transport costs which knocked 0.45 percentage points off the annual rate as fuel prices fell sharply.

The main upward effect came from food prices as fruit inflation doubled to 10.8 per cent.

The ONS said retail price inflation, on which many wage deals are based, fell to three per cent - the weakest rate since May 2006.