Inflation in the United Kingdom eased to 3% year-on-year in January, in line with expectations, marking the lowest annual rate since March 2025.
Data released Wednesday by the Office for National Statistics showed that inflation declined from 3.4% in December. Core inflation, which excludes energy, food, alcohol, and tobacco, fell slightly to 3.1% from 3.2% in the previous month.
Grant Witzenr, chief economist at the ONS, told X that the slowdown was partly driven by lower petrol prices. Airfare prices also contributed to the downward pressure, falling after December’s surge.
Food prices, particularly for bread, cereals, and meat, eased during the month, offset partially by rising costs for hotel accommodation and ready-made meals.
Economists expect the latest data could prompt the Bank of England to cut its main interest rate, currently at 3.75%, at its upcoming March meeting.
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