Jobless rate falls to new low

The number of people unemployed and claiming benefit fell by 18,000 to

lowest since October 1975.

The preferred government measure, based on International Labour

Organisation standards, fell to 5.3%, or 1,580,000 - the lowest since

records began in 1984.

Oil price fall lowers RPI

Despite last month's petrol price protests, inflation fell for the first

time in a year in August because of a fall in oil and petrol prices.

The key underlying inflation rate - which excludes mortgage interest

payments - went down to 1.9% in August from 2.2% in July.

The rate - used by the Bank of England in its deliberations on interest

rates - remains comfortably below the govern-

ment's target of 2.5%.

The headline rate of inflation - which includes mortgage interest

payments - also fell for the first time in 12 months to 3.0% from 3.3%

in July.

And the largest downward effect on the headline rate of inflation was

falling petrol and oil prices, according to National Statistics. Pump

prices had fallen sharply in August compared to rises last year,

reflecting falls in crude oil prices. The average price of a litre of

unleaded petrol was 81p in August this year compared to 85p in July.

This compared to last year's figures showing prices rising in the same

period from 71p to 73p.

Inflation figures were also affected by a fall in seasonal food prices -

particularly potato prices, which fell back from unusually high levels

the previous month.