UK inflation falls to 3%

BoE given 'green light' for rate cut

Michael Nelson
clock • 2 min read

The UK Consumer Prices Index (CPI) tumbled to 3% in the 12 months to January 2026, down 0.4% from the last reading, bolstering expectations for the Bank of England to cut rates in March.

On a monthly basis, CPI fell by 0.5% in January this year, compared to a fall of just 0.1% in January 2025, according to data from the Office for National Statistics released today (18 February).  The fall in CPI was largely driven by downward contributions from the transport and food and non-alcoholic beverages sectors. Meanwhile core CPI – which excludes energy, food, alcohol and tobacco prices – edged down to 3.1% in the 12 months to January 2026, from 3.2% in the 12 months to December 2025. The new year has opened with confirmation that December's increase was temporary, said J...

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