US Edition
UK inflation falls to 3%, giving hopes of early cut in interest rates
UK inflation dropped to 3% in January due to cheaper petrol, slower food price rises, and lower airfares, raising chances of a Bank of England rate cut next month, experts say.
- 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.
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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…
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.
Wiltshire Times
What UK inflation drop to 3 per cent means for mortgages, savings and interest rates
UK inflation has dropped to 3. Here’s what it means for mortgage rates, savings accounts and the chances of a Bank of England rate cut.
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