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| Version 1 | Version 2 |
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| UK inflation rate falls back to 0% | UK inflation rate falls back to 0% |
| (35 minutes later) | |
| 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. | 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. | 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. |
| The Retail Prices Index (RPI) measure of inflation rose to 1.1% from 1.0% in July. | The Retail Prices Index (RPI) measure of inflation rose to 1.1% from 1.0% in July. |
| CPI has been almost flat for the past seven months. | CPI has been almost flat for the past seven months. |
| Inflation has failed to take off due to a sharp fall in oil prices that began last year and a continuing supermarket price war. | Inflation has failed to take off due to a sharp fall in oil prices that began last year 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. | Oil prices hit a six-and-a-half year low of around $42.50 per barrel in late August. |
| The rate of core inflation - which strips out the impact of changes in the price of energy, food, alcoholic drinks and tobacco - fell to 1.0% in August from the previous rate of 1.2%. | The rate of core inflation - which strips out the impact of changes in the price of energy, food, alcoholic drinks and tobacco - fell to 1.0% in August from the previous rate of 1.2%. |
| "With consumer price inflation flat in August and core inflation easing back to 1.0%, there is little immediate pressure on the Bank of England to start raising interest rates," said Howard Archer, chief UK and European economist at IHS Global Insight. | |
| "Further reason for Bank of England caution on interest rates is the recent evidence that the economy has hit a soft patch during the third quarter," he said. | |
| The Bank of England is expected to start to raise interest rates in the first quarter of 2016. | |
| Last week the Bank said the risks from the slowing Chinese economy had increased since August and that it was monitoring the situation. | |
| British Chambers of Commerce economist David Kern said that low inflation reinforces the case for keeping low interest rates. | |
| "Low inflation supports living standards by boosting disposable income and will help to sustain the economic recovery. | |
| "However, last week's poor trade and manufacturing figures show that the recovery is still fragile, particularly in the face of major global uncertainties," he said. | |
| Richard Jeffrey of Cazenove |