UK inflation slows to 2.5% in May
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UK inflation slowed to 2.5% in May, the weakest in seven months, as gas and electricity prices fell.
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Inflation rose to 2.5% in August, the latest figures from the Office for National Statistics show.
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The slow rise in the price of clothing and footwear on the high street has once again helped to keep inflation under control in the UK.
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The Bank of England held its key interest rate at 5.25 percent for the second month in a row on Thursday, the central bank announced.
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The pound was weaker after comments from the Bank of England's rate-setter Kate Barker, who said the UK economy is not moving back to a high inflation environment.
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British inflation slowed to an annual rate of 1.1 percent in September from 1.3 percent in August, as cheaper airfares helped to push the rate down to the lowest level for six months, official figures showed.
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BRUSSELS, August 18 (Xinhuanet) -- Eurozone annual inflation fell from 2.4 percent in June to 2.3 percent in July 2004, the Statistical Office of the European Union (Eurostat), reported on Wednesday.
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Business & money: House price inflation eased last month to its slowest pace in a year.
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The Bank of England keeps UK rates on hold for the second month in row, following recent evidence of cooling house prices  and consumer spending.
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The Bank of England is generally expected to raise UK interest rates to 5.75% later, to help reduce inflation.
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Inflation in the fast-growing Indian economy drops to a two-year low at the beginning of September, official figures show.
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The UK trade gap with the rest of the world shrank to Â£3.5bn in May, the Office for National Statistics says.
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The pound has stayed on the back foot as markets reevaluated rate expectations following the Bank of England's decision earlier this week to hold rates at 5.25 percent.
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The Bank of England is expected to keep UK interest rates on hold at 5.75% following its two-day meeting.
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British inflation slowed to an annual rate of 1.3 percent in August from 1.4 percent in July, well below the 2.0-percent target used by the Bank of England.
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Food costs went up again but consumers finally got a break at the gas pumps in June, helping to lower inflation to the smallest increase in five months.
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Cheaper food and energy helped drag Britain's inflation rate down to 2.5% last month.