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Inflation slips below zero as petrol prices fall


Inflation slipped back to zero last month as petrol price falls and muted rises for new fashion ranges kept a lid on the cost of living. The Consumer Price Index (CPI) rate of inflation fell from 0.1% in July. CPI has hovered around zero since February. It means the Bank of England continues to face little pressure to raise interest rates, though some officials think underlying inflationary pressure is building as the economy recovers. Inflation was pulled lower as the price of a litre of diesel fell by 6.2p and petrol by 2.4p, both more sharply than in the same period last year, according to the Office for National Statistics (ONS).