UK inflation rate down to zero

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By Euronews
UK inflation rate down to zero

<p>Inflation in the UK fell to zero in August, due to cheaper fuel prices, clothing prices which rose less than they did a year ago, and stiff supermarket competition.</p> <p>Consumer prices were unchanged compared to 12 months ago following a 0.1 percent gain in July.</p> <p>The rate of core inflation – which excludes food, energy, alcohol and tobacco – fell as predicted to 1.0 percent from 1.2 percent.</p> <p>The news has reinforced expectations that interest rates are set to remain low for now.</p> <p>But there have been warnings that low inflation driven by the likes of petrol prices could be temporary – but that other pressures on prices remain.</p>