ANNUAL UK inflation fell last month to its lowest since December 2016 as computer game prices dropped sharply and clothing and footwear prices rose by much less than they did a year earlier, official figures show.

READ MORE: Ian McConnell: No escape from Johnson’s dire Brexit farce in Paris metro and airport

The Office for National Statistics said that annual UK consumer prices index inflation had fallen from 2.1 per cent in July to 1.7% in August, falling back below the 2% target set for the Bank of England by the Treasury.

READ MORE: Ian McConnell: Paris metro poster for slapstick British farce evokes Brexit metaphor

Economists had forecast a fall to 1.9% in August.

READ MORE: Ian McConnell: BMW talks reality as Johnson camp veil slips to reveal truth of Brexit

Howard Archer, chief economic adviser to the EY ITEM Club think-tank, said: “August’s moderation in inflation to 1.7% adds to the improvement in consumer purchasing power coming from annual earnings growth rising to an 11-year high of 4% .”