Slowing food prices drive surprise fall in inflation

Slowing food prices were behind a surprise fall in inflation in August, official figures show.

Inflation, which measures how prices change over time, fell to 6.7% in the year to August, down from 6.8% in July, the Office for National Statistics said.

It is the third month in a row that the figure has dropped.

Price rises for milk, cheese and eggs slowed the most, while fish and vegetable prices also eased.

When the rate of inflation falls, it does not mean prices are coming down, but that they are rising less quickly.

August's figure was a surprise as many analysts had expected an increase.

Chancellor Jeremy Hunt said the news showed "the plan to deal with inflation is working".

"But it is still too high which is why it is all the more important to stick to our plan to halve it so we can ease the pressure on families and businesses. It is also the only path to sustainably higher growth."