The Consumer Prices Index, the key measure of UK inflation, showed a surprise fall in August to 6.7% from 6.8% in July.

CPI inflation has dropped significantly from 10.1% in March to 8.7% in April, latest figures from ONS released today show.

There was a surprise surge in CPI inflation in February to 10.4% - from 10.1% in January - due mainly to rising food prices.

CPI inflation dropped back to 10.7% in November - from 11.1% in October - as petrol prices fell.