Drivers have been issued an update over fuel prices as the inflation rate finally fell for the first time in months.
In July, the CPI rate hit 10.1 per cent, a reflection of the cost of living crisis as food prices soared. However, this rate as now dropped in the year to August, hitting 9.9 per cent.
READ MORE- Queen Elizabeth funeral: Zara, Primark, Ikea among major stores and supermarkets to shut
According to RAC, the average cost of petrol is 166.66p a litre and diesel sits at 182.27p a litre. This is expected to continue to fall.
While this is only a small drop, it comes following the cost of diesel and petrol falling, taking some pressure off households. However inflation is still at its 40-year high.
The ONS said the biggest downward pressure on the inflation rate was the price of motor fuels, which has been falling in recent months.
As PA news agency reports, drivers have seen a 6.8 per cent drop in fuel prices, which was the highest since between March and April 2020, the early days of the pandemic when oil prices briefly went negative on some markets.
“The easing in the annual inflation rate in August 2022 reflected principally a fall in the price of motor fuels in the transport part of the index,” the ONS said.
They added: “Smaller, partially offsetting, upward effects came from price rises for food and non-alcoholic beverages, miscellaneous goods and services, and clothing and footwear.”
But George Lagarias, chief economist at accountancy Mazars, warned that it will be some time before inflation truly starts dropping off.
“Higher energy prices for all the previous months have fully fed into most supply chains and it will take months of lower oil for end-consumer prices to meaningfully come down again. Inflation may well remain a central theme until at least the end of the year,” he said.
“However, input costs have begun to drop and we should see this feeding into general prices eventually.”
The figures mark a positive trend for the first time in more than a year. Inflation has risen every month since September 2021, according to the official figures.
But despite this, think tank Resolution Foundation has issued a warning as costs still remain high, arguing the the poorest 10th of households are facing an average inflation rate of 10.6 per cent, compared with nine per cent. for the richest.
Senior economist Jack Leslie said: “High inflation is set to be with us for some time, particularly for low-income households who continue to be hit hardest by high prices.
“Having delivered £2,200 worth of cost-of-living support for every household this year, the Government will need to consider what support will be needed next year too.”
Inflation has been piling the pressure on households across the country with food prices, fuel and energy all seeing increases. However, experts believe that the support on energy bills announced by the Government last week will ensure that inflation does not reach the concerning highs that had been forecast.
READ NEXT-
Scottish island in Shetlands complete with 6-bed historic mansion hits market
Where will the Queen be buried as coffin prepares to leave Scotland
Energy bill support scheme available - and how you can access it
Food Awards Scotland 2022: Glasgow cafes, restaurants, hotels and takeaways nominated - full list
Drivers issued MOT warning over removing common item from car or risk failing test
