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