Prices rises have eased for the third month in a row, according to new data from the Office for National Statistics (ONS).
The consumer prices index (CPI) measure fell to 6.7% in the year to August, down from 6.8% in July. Inflation is now at its lowest point since February 2022.
Economists, along with the Bank of England, had predicted that inflation would climb above 7%.
Slower price increases for food as well as a drop in hotel and air fare costs were among the factors that offset higher fuel prices.
Food inflation remains high but has continued to slow down in recent months. Price rises for food and non-alcoholic drinks eased to 13.6% in the year to August, compared with 14.9% in July and a peak of 19.2% in March, which was the highest annual rate seen for more than 45 years.
The latest inflation figures cast doubt over whether the Bank of England will increase interest rates again at its next meeting on Thursday.
