Dow Jones plunges amid news of US inflation rates

Inflation slowed for the second consecutive month as energy costs fall

Prices in the US remained stubbornly high in August even as the overall pace of inflation slowed for the second consecutive month. The news sent US stock markets into a tailspin, with the Dow Jones index losing nearly 1,300 points.

The Consumer Price Index (CPI), the Bureau of Labor Statistics' monthly cost of living survey, found prices were 8.3% higher last month compared with August last year. The figure was down from an annual rate of 8.5% recorded in July and 9.1% in June, the highest rate in four decades.