UK inflation rate eases back to 2.5% in August

The annual rate of inflation in the UK, as measured by the consumer prices index, fell back to 2.5% in August after a surprise rise to 2.6% in July.

The retail price index (RPI) inflation measure, which includes housing costs, fell to 2.9% in August, the Office for National Statistics (ONS) said.

ONS statistician Richard Campbell explained there were factors which could lead to a potential increase.