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ONS: 'Fairly modest reduction' in inflation rate

17 September 2013 Last updated at 12:52 BST

The Office for National Statistics (ONS) says there has been a "fairly modest reduction" in the rate of inflation, with the consumer prices index (CPI) falling to 2.7% in the year to August, from 2.8% in July.

Richard Campbell from the ONS told BBC News the slight decrease was down to transport and clothing costs.

"Prices are 2.7% more than they were a year ago," he continued, "but earnings are only going up by 1%, so we're seeing this continuing squeeze on people's pockets."

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