INFLATION measured by the consumer prices index fell to 2.7 per cent in the year to August, from July's figure of 2.8 per cent.

The drop was mainly due to air fares and petrol and diesel which all rose more slowly than they had a year ago. Summer sales on the high street also helped.  

It means prices are still rising faster than wages, which rose by 1.0 per cent on average over the same period.