Inflation falls further in August

THE headline rate of inflation fell to its lowest rate since 2009 last month.

The Office for National Statistics said the Consumer Prices Index (CPI) figure was 1.5%, down from 1.6% in July.

It said falls in the prices of motor fuels and food and non-alcoholic drinks provided the largest downward contributions.

Upward effects came from clothing, transport services and alcohol.

The Retail Prices Index (RPI), which takes into account housing costs, fell to 2.4% from 2.5% in July.

The Bank of England’s target is 2%.

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