Inflation fell from its recent highs in August as diesel and petrol prices dropped over the month, but still remains close to its 40-year record.
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation reached 9.9% in the year to August, down from 10.1% the previous month.
Experts had expected the figure to be unchanged between the two months.
The ONS stated that the biggest downward pressure on the inflation rate was the price of motor fuels, which has been falling in recent months.
The 6.8% drop in fuel prices was the highest since between March and April 2020, the early days of the pandemic when oil prices briefly went negative on some markets.
“The easing in the annual inflation rate in August 2022 reflected principally a fall in the price of motor fuels in the transport part of the index,” the ONS said.
“Smaller, partially offsetting, upward effects came from price rises for food and non-alcoholic beverages, miscellaneous goods and services, and clothing and footwear.”
Daniel Casali, chief investment strategist at wealth manager Evelyn Partners, said there are mixed signals in the August inflation data.
“On the one hand, headline CPI inflation came in lower-than-expected, but the underlying core CPI measure remains stubbornly high, increasing the pressure on the Bank of England to raise interest rates by more than the 50bps expected by the Bloomberg consensus of economists when it meets on 22 September.
“Nevertheless, this August print does not reflect recently announced policy measures, which will have a material effect on future inflation readings.
“The new Liz Truss government delivered a significant intervention in the energy market, including a two-year energy price guarantee that fixes the average household bill at around £2,500 and lasts for two years, starting 1 October.“
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