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UK inflation edges lower

Inflation showed a slight drop last month falling to 2.5% in August, from 2.6% the previous month. The decline came as furniture prices, gas and electricity bills and clothing costs rose by less than a year ago.

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Prices at the pump raising cost of living

Expensive petrol has a big impact on the cost of living Credit: Danny Lawson/PA Wire

Although the inflation rate for August is expected to show a slight drop, prices at the petrol pump are keeping up the pressure on consumers.

The steady rise in the price of oil since its June low is expected to exert upward pressure on the cost of living over the coming months.

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