A key measure of inflation, the Consumer Prices Index (CPI), has dropped to the lowest level since February 2005, according to the Office for National Statistics.

CPI - a measurement of prices for a range of consumer products - declined to an annual rate of 1.6% in August from 1.8% in July, due partly to lower food costs.

However, the Retail Prices Index (RPI) inflation measure, which includes mortgage interest payments and housing costs, rose to -1.3% from -1.4%.