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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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Slight drop in rate of inflation expected

Inflation figures for August are expected to show a slight drop when they are released by the Office for National Statistics this morning.

The consumer price index (CPI), which hit a 31-month low in June before unexpectedly rising to 2.6% in July, is likely to ease back to 2.5% or less.

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