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UK inflation falls to 3%, giving hopes of early cut in interest rates
UK consumer price inflation dropped to 3% in January, the lowest since March 2025, driven by lower food, petrol, and airfares, boosting expectations of a Bank of England rate cut.
- ONS data for the Office for National Statistics showed consumer price index fell to 3% in January, matching economists' expectations and the lowest since March 2025.
- Falling petrol and food prices meant lower inflation this month, with airfares dropping after December while hotel stays and takeaways added upward pressure.
- Detailed ONS figures indicated core inflation stood at 3.1% in January alongside a 5.2% unemployment rate and weaker annual wage growth as fourth-quarter GDP growth slowed to 0.1%.
- Markets reacted by pricing a Bank of England rate cut toward 3.5% from 3.75%, while sterling traded at $1.3562 as investors assessed policy implications.
- Analysts cautioned that weak growth and jobs data mean rates could fall to 3% by year-end, while markets and the Bank of England's March meeting will watch purchasing managers' index due this coming Friday.
98 Articles
98 Articles
UK Inflation Falls to 3 Percent, Economists Forecast Interest Rate Cut in Spring
The Office for National Statistics (ONS) on Feb. 18 said that UK inflation decreased to 3 percent in the 12 months to January, down from 3.4 percent in the 12 months to December 2025 and the lowest since March 2025. ONS Chief Economist Grant Fitzner said in a post on X that the fall in inflation from March of last year was “driven partly by a decrease in petrol prices.” Fitzer said in a follow-up post that airfares “were another downward driver …
readingeagle
LONDON Inflation in the United Kingdom fell to its lowest level in 10 months, largely thanks to the decline in food and gasoline prices, showed on Wednesday official figures, a decline that has reinforced expectations that the Bank of England will cut interest rates in March. The National Bureau of Statistics indicated that the consumer price index was 3% higher in January than a year earlier, below 3.4% in December. The fall was in line with an…
lancashiretelegraph.co.uk
Inflation falls to 3 boosting chance of interest rate cuts
The rate of Consumer Prices Index (CPI) inflation decreased to a 10-month-low of 3 in January from 3.4 in December.
The annual inflation rate in the UK was 3.0 percent in January, down 0.4 percentage points from December and the lowest since March last year. On a monthly basis, prices fell by 0.5 percent, after falling by 0.1 percent in December, the Office for National Statistics said today.
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