India, Sept. 16 -- UK inflation slowed to a near five-year low in August largely driven by subsidies provided for eating out and lower taxes, the Office for National Statistics reported Wednesday.

Inflation eased less-than-expected to 0.2 percent in August from 1 percent in July. Prices were forecast to climb 0.1 percent. But this was the lowest rate since December 2015.

Month-on-month, consumer prices dropped 0.4 percent, offsetting a 0.4 percent rise in July. Economists had forecast a 0.6 percent fall.

Due to the Eat Out to Help Out Scheme implemented by the government, charges of restaurants and cafes declined in August, providing the largest downward contribution to the annual inflation, the ONS reported.

The reduction in Value Ad...