A dip in the annual rate of inflation is being credited to slowing fuel cost rises and summer discounting of Autumn clothing.
The Office for National Statistics said the fall in the Consumer Price Index (CPI) measure from 2.8% in July to 2.7% in August was also spurred by a lower rise in air fares than last year.
Figures showed a month-on-month increase of 0.4%, which was the lowest August rise since 2009.
The fall in the CPI rate came as clothing and footwear inflation came in at 2% compared to 2.8% 12 months previously, at a time of year when retailers are introducing new full-price autumn ranges.
Meanwhile, petrol prices rose 2p per litre compared to a rise of 3.5p per litre in August 2012, mirroring movements in oil prices.
Air fares were up 9.4% compared to 10.2% a year ago, with the main downward effect coming from domestic routes.
The ONS said the most notable upward contribution to inflation came from furniture, household equipment & maintenance where prices rose for a variety of furniture items and household appliances.
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