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UK Inflation Drops to 3% in January

UK inflation dramatically fell to a near-year low of 3% in January, igniting hopes for consumers and significantly increasing expectations for an imminent interest rate cut by the Bank of England. This notable decline was primarily driven by lower costs for airfares, petrol, and food, aligning with analysts' predictions for a shift in monetary policy.

UK Inflation Drops to 3% in January
  • UK inflation decreased to 3% in January, marking its lowest level in nearly a year, according to the Office for National Statistics (ONS).
  • This decline was primarily driven by lower airfares, petrol, and food prices, as reported by The Guardian.
  • The significant fall in inflation has increased expectations for an interest rate cut by the Bank of England in the near future.
  • According to ITV News, the average price of petrol fell by 3.1p per litre between December 2025 and January 2026, contributing to the overall drop.
  • The 3% figure was consistent with analysts' expectations, further bolstering the case for potential monetary policy adjustments.
  • Professional Pensions noted that the UK Consumer Prices Index (CPI) tumbled to 3% in the 12 months to January 2026, down 0.4% from the previous month.
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Editorial Process: This article was drafted using AI-assisted research and thoroughly reviewed by human editors for accuracy, tone, and clarity. All content undergoes human editorial review to ensure accuracy and neutrality.

Reviewed by: Jacob Feldman

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