UK inflation falls to 2.5%

Official data from the Office for National Statistics (ONS) showed the Consumer Prices Index (CPI) inflation rate fell to 2.5% last month, down from 2.6% in July. July's reading caught out many commentators who forecast a drop to 2.3%, with rising oil prices starting to feed into the reading. However, the latest figure has once again moved inflation back towards the Bank of England's 2% target - and helped vindicate the aggressive monetary policy pursued by the Bank. Inflation has come in sharply as global growth has slowed and the UK's economy struggles to fight its way out of the...