Food prices rise for fifth month in a row

UK INFLATION remained unchanged last month but food and drink price rises have accelerated for the fifth month in a row.

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The rate of Consumer Prices Index (CPI) was 3.8% in August, the same as July, the Office for National Statistics (ONS) said.

This was the level that most economists had been expecting, meaning overall inflation remains above the UK's 2% target rate.

Air fares coming down after a spike the previous month helped offset petrol and diesel prices rising in August, the ONS said.

Restaurants and hotels also put upward pressure on the overall rate as demand for meals out and overnight stays stayed high due to popular concerts around the UK.