Petrol fuels increase but August RPI lower
The annual inflation rate rose to 2.45 per cent in August, the highest rate since the start of the official series in 1997.

Latest figures from the Office for National Statistics show that, as measured by the Consumer Prices Index (CPI), for the second consecutive month the largest upward effect on the CPI annual rate came from transport. Petrol pump prices continue to rise, reflecting movements in crude oil prices.

Another large upward effect came from food, because of a number of small upward contributions from non-seasonal food prices.

However, inflation fell in August for the Retail Prices Index (RPI), where there were additional downward influences from housing components excluded from the CPI, especially depreciation costs - the amount homeowners need to spend to maintain their property.

The largest downward effect on the CPI annual rate came from recreation and culture because of price decreases on pre-recorded DVDs, videos and CDs, reduced theatre and live music admission costs and cheaper package holidays to some Mediterranean destinations.