Inflation remains below target
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The Consumer Price Index weighed in at 1.6% in August, down from 1.8% in July and remaining below the government's 2% target.
The Retail Price Index which factors in housing costs and includes mortgage payments, also fell during the month, from 1.4% in July to 1.3%.
But the RPIX inflation index - which excludes mortgage payments - increased to 1.4%, up from 1.2% in July.
Mervyn King, governor of the Bank of England, says inflation is likely to remain volatile for the next six months and that in the medium term it will stay below target.
King says: "The outlook for inflation will guide when and how quickly the Monetary Policy Committee raises the Bank base rate back to more normal levels, and when the assets that have been purchased since March are sold."
