U.K. annual inflation slowed for the second consecutive month in August, driven by a slowdown in transportation cost, data published by the Office for National Statistics showed Tuesday.
Inflation edged down to 2.7 percent from 2.8 percent in July. The rate came in line with economists' expectations. However, consumer prices gained 0.4 percent from July.
Core inflation that excludes energy, food, alcoholic beverages and tobacco, held steady at 2 percent in August, confounding expectations for a moderate rise to 2.1 percent.
In a separate communique, the ONS said pipeline inflation slowed markedly in August, indicating easing inflationary pressure.
Output price inflation declined more-than-expected to 1.6 percent from 2.1 percent a month ago. The rate was seen at 1.8 percent. Month-on-month, output prices edged up 0.1 percent compared with 0.2 percent increase in July.
Similarly, input price inflation declined to 2.8 percent from 5.1 percent last month and came in below 3 percent consensus. On a monthly basis, input prices fell for the first time in three months, down 0.2 percent.
ONS said house prices in the U.K. increased at a faster rate of 3.3 percent in July after climbing 3.1 percent in June. House price growth remained stable across most of the U.K., although prices in London were increasing faster than the national average.
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