18 Feb 2026
The UK inflation rate was 3% in the year to January, down from 3.4% in December, according to the latest date from the Office for National Statistics (ONS).
The fall in January's rate was partly due to lower petrol prices with the average price of petrol falling by 3.1p per litre between December 2025 and January 2026, compared with a rise of 0.8 pence per litre the year before.
Air fares were another downward driver as were lower food prices, particularly for bread, cereals and meat. These were partially offset by the cost of hotel stays and takeaways.
Martin Sartorius, Lead Economist at the Confederation of British Industry (CBI), said: 'Inflation ticked down in January, broadly in line with the Bank of England's projections. We expect this downward momentum to continue in the coming months, reflecting the fading impact of last year's energy and utility price increases.
'January's slowdown in inflation, alongside cooling labour market conditions, increases the likelihood that the Monetary Policy Committee will cut rates again over the next couple of months. Beyond then, the scope for further Bank Rate reductions will become more limited, as the Committee looks to ensure that inflation returns sustainably to the 2% target.'