The UK's headline rate of inflation dropped to 2.7 per cent in August, official data has shown.
According to figures released by the Office for National Statistics (ONS), inflation was down last month from 2.8 per cent in July.
It was noted by the ONS that air fares, petrol and diesel were all downward pressures on the rate of inflation during August.
Chris Williamson, chief economist at Markit, stated oil prices are likely to have an impact over the UK's inflation rate in the coming weeks and months.
"There remains a very real possibility that price pressure could remain stubbornly high in coming months, especially as the economic recovery gathers momentum, adding to the difficult task faced by policymakers," he said.
Eurostat, the statistical office of the European Union, recently revealed that inflation was down from 1.6 per cent in July to 1.3 per cent in August. Food, alcohol and tobacco were shown by the body to have the highest annual rate in August.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.