Inflation slows to 10-month low amid easing petrol and food costs

UK inflation has eased to its lowest since March last year on the back of falling petrol prices and slower food price increases, according to official figures.

The rate of Consumer Prices Index (CPI) inflation decreased to 3% in January from 3.4% in December, the Office for National Statistics (ONS) said.

The reading was in line with the predictions of economists and puts inflation back on a downward trajectory after an increase in the previous month.

Data showed that motor fuels particularly contributed to the fall of inflation, with the average price of petrol falling by 3.1p per litre between December 2025 and January 2026.

ONS chief economist Grant Fitzner said: "Airfares were another downward driver this month with prices dropping back following the increase in December.

"Lower food prices also helped push the rate down, particularly for bread & cereals and meat.

"These were partially offset by the cost of hotel stays and takeaways."

Chancellor Rachel Reeves said: "Cutting the cost of living is my number one priority.

"Thanks to the choices we made at the budget we are bringing inflation down, with £150 off energy bills, a freeze in rail fares for the first time in 30 years and prescription fees frozen again.

"Our economic plan is the right one, to cut the cost of living, cut the national debt and create the conditions for growth and investment in every part of the country."