Lower food and clothing prices bring inflation to lowest level in six months

LOWER food and clothing prices pushed inflation to its lowest level in six months, falling from 5% in June to 4.4% last month.

The fall was greater than most economists had predicted and was attributed largely to a slowdown in consumer spending.

In recent months, retailers and garages have found themselves with higher- than-expected stock levels and have been forced to cut prices aggressively to entice buyers into the shops or on to the forecourts, according to IIB chief economist Austin Hughes.