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UK inflation falls to 2.5% in August

The annual rate of inflation in the UK has fallen slightly from 2.6% in July with the Consumer Prices Index (CPI) to 2.5% in August according to the latest figures from the Office of National Statistics (ONS).

The ONS said the largest downward pressures behind the change in the CPI rate came from furniture, household equipment & maintenance, housing & household services (particularly domestic gas) and clothing & footwear. These were partially offset by an upward pressure from transport (particularly motor fuels).

The Retail Prices Index (RPI) inflation measure, which includes housing costs, fell to 2.9% from 3.2%.

Inflation has been falling since its peak of 5.2% in September 2011.

Analysts expect inflation to continue to fall this year down to the Bank of England’s target of 2%.

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