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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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Will food prices rise in response to poor harvests?

Droughts, particularly in the US, have sent the price of grains up Credit: Andrew Matthews/PA Wire

The is summer has seen one of the most devastating droughts in the US in living memory, as well as poor harvests in the UK.

Both factors raise the price of grains, however, consumers have so far been shielded from these shifts.

The August food price index from the British Retail Consortium remained unchanged from July, although there is a risk that food prices could be affected in the months ahead.

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