The UK’s inflation price fell sharply to 0.2% in August because the impact of the Eat Out to Help Out scheme pushed down restaurant costs, figures present.
July’s determine had been 1%.
The minimize in VAT from 20% to five% within the hospitality sector additionally contributed to the large drop in Consumer Prices Index (CPI) inflation, mentioned the Office for National Statistics.
The consuming out scheme, which ran from Monday to Wednesday in August, supplied 50% off meals as much as the worth of £10.
“The value of eating out fell considerably in August due to the Eat Out to Help Out scheme and VAT minimize, resulting in one of many largest falls within the annual inflation price in recent times,” mentioned ONS deputy nationwide statistician Jonathan Athow.
“For the primary time since information started, air fares fell in August as fewer individuals travelled overseas on vacation. Meanwhile. the same old clothes value rises seen at the moment of yr, as autumn ranges hit the retailers, additionally didn’t materialise.”