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.
Consumer prices were unchanged compared to 12 months ago following a 0.1 percent gain in July.
The rate of core inflation – which excludes food, energy, alcohol and tobacco – fell as predicted to 1.0 percent from 1.2 percent.
The news has reinforced expectations that interest rates are set to remain low for now.
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.
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