The Consumer Prices Index annual inflation rate fell to 1.6% in August compared to 1.8% in July.
The Retail Prices Index rate fell by 1.3% versus a 1.4% fall in July.
The Office for National Statistics reported that food and non-alcoholic drinks were among the biggest contributors to downwards pressure on the CPI.
“This was mainly due to food where, overall, prices decreased this year at their fastest rate for a July to August period since 2000, but rose by 1.4% a year ago,” the ONS said. “Within food, downwards contributions came from a wide range of items with the main effects coming from fruit, bread and cereals, vegetables and meat.”
There was a “large upward contribution” to the CPI rate from “furniture, household equipment and maintenance where prices rose by more than a year ago for a wide range of furniture, carpets and rugs.”