AKIPRESS.COM - A drop in food and petrol prices helped inflation edge lower last month, pushing it down to 1.5% from 1.6% in July, as measured by the consumer price index, reports The Guardian.

Figures from the Office for National Statistics showed the wider retail prices index (RPI) measure used to set many pay deals was down to 2.4% on the year, compared with 2.5% in July.

Both rates were as forecast by economists and they said the relatively benign price pressure in the economy would mean the Bank of England is in no hurry to raise interest rates. Its monetary policy committee (MPC) has held borrowing costs at a record low of 0.5% for more than five years.

"Inflation is still on a downward trend despite the economic recovery's strength," said Samuel Tombs, senior UK economist at Capital Economics.

"Although the low inflation outlook is unlikely to prevent the MPC from raising interest rates entirely over the next couple of years, it should limit the speed at which they rise."

The Office for National Statistics (ONS) said falling food and non-alcoholic drink prices were behind much of the slowdown in the main CPI measure of inflation. That echoed business reports indicating that a fierce supermarket price war has brought down food prices.

With oil prices around two-year lows, pump prices also helped bring down inflation in August. Petrol fell by 1.8p per litre between July and August this year, compared with a rise of 2p per litre a year ago, the ONS explained. Offsetting some of those downward pressures were the prices of clothing, transport services and alcohol.