British inflation rate dips to 1.5% in August

British inflation slowed to more than five-year low in August, as prices of motor fuels and food and non-alcoholic drinks dropped dramatically.
The Britain's consumer prices index (CPI) grew by 1.5 percent in the year to August 2014, down from the 1.6 percent in July, said Office for National Statistics (ONS) Tuesday.
The largest contribution to the decrease in the rate came from motor fuels and food and non-alcoholic drinks, while clothing, transport services and alcohol were the largest offsetting factors, said ONS.
British consumer prices rose 0.4 percent in August from the previous month, and the core annual inflation rate, which excludes alcohol, tobacco, food and energy prices, rose 1.9 percent versus 1.8 percent in July, data showed.
CPIH, an inflation gauge include consumer prices and owner occupier's housing costs, increased 1.5 percent in the 12-month to August 2014, similar to the growth rate a month previous, data also showed.