The UK inflation for August is reducing

The annual rate of inflation in the UK, as measured by the consumer price index, fell to 2.5 percent in August from 2.6 percent the previous month, said the British Office for National Statistics said on BBC.

The index of retail prices, which includes housing costs such as rent and mortgage payments, a decrease to 2.9% last month at 3.2 percent in July. The delay is mainly due to slower growth in prices of furniture and gas.

In July, consumer price inflation accelerated unexpectedly, but the trend is slowing steadily since peaked by 5.2% in September last year.

The statistics office said that slower growth in clothing prices also contributed to the favorable outcome, while in July it registered record highs. This has helped to compensate for a rapid increase in oil prices and the railway, which in August fell
Analysts had expected inflation to slow in July, since then the air fares rose and auctions ended earlier due to the summer Olympics in London. Now they argue that inflation will fall, approaching the goal of the Bank of England by 2%.
James Knightley at ING said that despite pressure upwards of raw materials, fuel and food prices, it expects inflation to reach "a little more low end of the year."

Peter Dixon of Commerzbank agrees with him: "From now on it should for a while to see lower levels."

Analysts predict that slowing inflation will reduce concerns that the policy of the Bank of England to funnel money into the economy to stimulate demand may lead to its acceleration.

Britain's economy shrank in the last three quarters and the financial institution announced a further easing in July, bringing the total volume infused funds into the economy under the program for the purchase of assets to 375 billion pounds.

Some analysts suggest that this volume could rise before the end of the year as the economy struggles to get out of recession. "We doubt that the outlook for inflation will persuade the bank to announce additional purchases of assets by the end of the year," said Samuel Tuum at Capital Economics.