UK inflation returns to 0 in August

London

INFLATION in the United Kingdom returned to zero in August, driven down by the cost of motor fuel and clothing. A measure of core price pressures also eased.

Consumer prices were unchanged compared with a year earlier following a 0.1 per cent annual gain in July, the Office for National Statistics said in London on Tuesday. The figure was in line with the median forecast of economists in a Bloomberg survey. Inflation excluding volatile food and energy costs slowed to one per cent from 1.2 per cent, also as predicted.