The index has fallen sharply from September, when it stood at 2.7 percent. It plunged to 2.2 percent in October and eased further in November and December.
The largest contributors to the decline were prices for food and recreational goods and services. Declines were offset, partly, by a gain in motor fuel costs, ONS said.
ONS said the home owners cost index rose 1.9 percent December 2012 to December 2013, although it was unchanged from November.
The retail price index for the month adjusted to account for clothing prices rose 2 percent on an annual basis and was unchanged month to month.