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LONDON, Sept. 16-- British inflation slowed to more than five-year low last month, as prices of motor fuels and food and non-alcoholic drinks dropped dramatically.

The Britain's consumer prices index (CPI) grew by 1.5 percent in the year to August 2014, down from the 1.6 percent in July, said Office for National Statistics (ONS) Tuesday.

The largest contribution to the decrease in the rate came from motor fuels and food and non-alcoholic drinks, while clothing, transport services and alcohol were the largest offsetting factors, said ONS.

British consumer prices rose 0.4 percent in August from the previous month, and the core annual inflation rate, which excludes alcohol, tobacco, food and energy prices, rose 1.9 percent versus 1.8 percent in July, data showed.

CPIH, an inflation gauge include consumer prices and owner occupier's housing costs, increased 1.5 percent in the 12-month to August 2014, similar to the growth rate a month previous, data also showed.

"CPI inflation looks set to remain on a downward trend over the rest of this year. The recent fall in oil prices suggests that fuel prices will decline over the coming weeks," said Samuel Tombs, Senior UK Economist at Capital Economics, in an analysis piece.

The London-based economic research company forecast that the inflation rate could fall to as low as one percent by the end of this year and will remain below the two percent target in 2015.

"Although the low inflation outlook is unlikely to prevent the Monetary Policy Committee (of the central bank) from raising interest rates entirely over the next year or two, it should strength the case for the Committee to raise them more gradually than in past tightening cycles," added Tombs.

Martin Beck, senior economic adviser to the EY ITEM Club, also commented in a note:" The drop in the price of oil, combined with a variety of other factors, suggests that the UK is set for a sustained period of very low inflation."

He said: "Weak wage growth, plenty of slack in the economy, anchored inflation expectations and the continued effect of sterling's appreciation over the past year, all point to inflation remaining well below the MPC's target for the remainder of 2014."