The Consumer Prices Index (CPI) inflation rate remained unchanged at 1.8 per cent in July, confounding expectations that there would be another fall.
Retail Prices Index (RPI) inflation fell 1.4% compared to the 1.6 per cent decline in June, the Office for national Statistics reported.
Food and non-alcoholic drinks exerted the strongest downward pressure on the CPI following a fall in meat and vegetable process this year.
Upward pressure came from recreation and culture – mainly games, hobbies and, to a lesser extent, computer games and pre-recorded DVDs.
Prices of furniture and household goods also fell by less than a year ago, “partially offset by a small downward effect from carpets and other floorcoverings where prices fell by more than a year ago”.
The ONS data suggested that deflationary pressures may be easing, economists said.
However the Bank of England – which has a 2% target inflation rate - has said that it is likely that inflation will fall below 1% in the autumn.