The rate of inflation slowed to 2.5% in August due to smaller rises in the price of clothing.
Figures released today by the Office for National Statistics show the Consumer Prices Index (CPI) fell back to 2.5% in August from 2.6% in July.
The Retail Prices Index (RPI) inflation measure fell to 2.9% from 3.2% in July. The ONS said that small rises in furniture and gas prices were also attributed to the fall.
The rate of inflation has been falling progressively since peaking at 5.2% last September.
The slowdown in the CPI rate was expected by analysts after the 2.6% rise in July was attributed to an early end to sales due to the Olympics and rising air fares.
Shore Capital analyst Darren Shirley said: “Clothing and footwear provided downward pressure, with the 2.8% price increase reported to be a lower rate than that reported in August 2011. The downward effect was primarily in menswear, whilst there was slight upward pressure from womenswear.
“As we stated in our missive on the dip in the food inflation reported for July, we expect the fall-back in inflation through the summer months to be followed by a return to a stronger inflation rate through the fourth quarter of 2012 and the first half of 2013, as the impact from a weak Northern Hemisphere harvest feeds into prices, particularly the categories we have highlighted above.”
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