One of the key measures of inflation, the consumer price index, went down to a five year low in the month of August.
But at 1.6 per cent. it was still higher then expected. The hub for National Statistics said. Experts had predicted CPI would be 1.4 per cent at the most.
The slump had mostly come from gas, electric, and food prices. Showing there biggest fall for August since the year 2000.
Retail Price Inflation, which includes housing costs and is the main method for pay deals, was 1.3 per cent in August to -1.4 per cent in July. The forecast was 1.5 per cent.
The Bank Of England is looking to keep inflation at 2 per cent to keep most prices and the wider economy healthy and stable. Governor Mervyn King said "It will be volatile for the next few months".