UK inflation rate falls to 2.7%

The UK's rate of inflation for the year to August, measured by the consumer prices index (CPI), fell by 0.1% to 2.7% from the figure of 2.8% in July.

Despite the fall, the prices of goods and services continue to outstrip wages which saw an average growth of 1% for the same period.

The largest contributions to the fall in the rate came from the transport (particularly motor fuels and air transport) and clothing sectors. Clothing sales may have been boosted by summer discounting. These were partially offset by an upward contribution from furniture, household equipment and maintenance.

Inflation as measured by the Retail Price Index (RPI) was up 0.2% to 3.3% in August, from 3.1% in July.

The other main inflation measures were unchanged between July and August: CPIH (which includes owner-occupier housing costs excluded from CPI) grew by 2.5% and RPIJ (which uses a more complex formula to the RPI figure) grew by 2.6%.

The Office for National Statistics (ONS) said these latest numbers continue the trend of broadly steady inflation seen since spring 2012.