The UK's annual inflation rate dropped to 3% in January, in line with expectations
According to data from the Office for National Statistics, the UK Consumer Price Index (CPI) rose by 3% in the 12 months ending January 2026, lower than the 3.4% in the 12 months ending December 2025, in line with market expectations. This is the lowest annual inflation rate since March 2025, primarily driven by a slowdown in the increase of transportation and food prices.
The core inflation rate, which excludes volatile components such as food and energy, fell to 3.1% in January, the lowest level since September 2021, indicating that underlying price pressures are gradually easing.
On a monthly basis, consumer prices decreased by 0.5%, reversing the trend of a 0.4% increase in December
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