By Marcus Leach

Official figures show that the rate of inflation fell another 0.1% to 2.7% last month.

Data from the Office for National Statistics suggested that the largest contributions to the fall came from transport, particularly motor fuels and air transport, and clothing.

These were partially offset by an upward contribution from furniture, household equipment and maintenance.

The ONS said the latest numbers continue the trend of broadly steady inflation seen since spring 2012. It fell 0.1% to 2.8% in July.

Inflation as measured by the retail prices index rose to 3.3% in August from 3.1% in July.

“We are getting growth in the UK, but without huge improvements in unemployment and it seems without too many price pressures either," Jeremy Cook, chief economist at the foreign exchange company, World First, said.

“The slack in the UK economy following years of weak performance will take time to improve and with that comes fairly benign price activity. Recent strength in sterling markets has also helped offset increase in oil prices that occurred during the escalation of tensions around the Syrian conflict.

“Unfortunately, while this will be good news for Mark Carney and the team at Threadneedle Street given the inflationary caveats to their forward guidance plan, to the man on the street, who are seeing wage increases at only 1%, this still means that life and spending decisions remain tough, and in reality, talk of a recovery remains merely talk."

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