Narrow price increases on clothing and footwear following the summer sales helped cool consumer price inflation in August, official figures showed today.

On a month-on-month basis, the Consumer Prices Index increased by 0.3 per cent, helping to confirm market expectations that the cost of borrowing in the UK is near its peak.

The Office for National Statistics said this August, both adults' and children's clothing experienced weaker price recoveries and more special offers than a year ago.

In addition, less replacement stock came in at higher prices this year it added.

The Bank of England has raised the cost of borrowing by a quarter point on five occasions since November.