UK Inflation Rate Falls Back to 0%

The UK's inflation rate fell to 0% in August, down from July's rate of 0.1%, the Office for National Statistics (ONS) has said.

Inflation, as measured by the Consumer Prices Index, fell due to a smaller rise in clothing prices from a year ago and cheaper fuel prices, the ONS said.

BBC reports that the CPI inflation has been almost flat for the past seven months.

Inflation has failed to take off due to a sharp fall in oil prices and a continuing supermarket price war.

Oil prices hit a six-and-a-half year low of around $42.50 per barrel in late August.

The ONS figures also showed that the Retail Prices Index (RPI) measure of inflation rose to 1.1% from 1.0% in July.