The UK inflation rate fell back to 0% in August, down from 0.1% the previous month, largely due to a smaller rise in clothing prices.

According to the Office for National Statistics (ONS), the fall in inflation, as measured by the Consumer Price Index (CPI), was said to be largely due to price movements in the clothing and footwear sector, specifically a smaller growth in clothing prices compared with a year ago, as well as cheaper fuel prices.

In July, the Retail Prices Index (RPI) measure of inflation climbed from 1.0% to 1.1%. For the past seven months CPI has remained almost flat.

An ongoing price war among grocers has pushed prices down and contributed to low levels of inflation.