UK inflation continues downward trend in August

UK CPI inflation fell from 1.6% to 1.5% in August, a level seen on only two other occasions over the past five years.

The Office for National Statistics said the 0.1 percentage point drop, in line with economists' expectations, was prompted by falls in the price of fuel and food & non-alcoholic drinks. The fall brings CPI inflation back to a low seen in May but previously not reached since 2009. Price growth has now been below the Bank of England's 2% target for the past eight months, the longest such run in a decade. CPIH and RPI were both unchanged on the month at 1.5% and 1.8%, respectively. With wage inflation also subdued, the statistics put little pressure on the Bank of England to raise rat...