𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Data showed that motor fuels particularly contributed to the fall of inflation, with the average price of petrol falling by 3.1p per litre between December 2025 and January 2026.

The average price of petrol stood at 133.2p per litre in January, down from 137.1p per litre in the same month a year earlier.

Meanwhile, diesel prices also dropped, falling by 3.2p per litre compared with the previous month.

UK inflation has eased to its lowest since March last year on the back of falling petrol prices and slower food price increases, according to official figures.

The rate of Consumer Prices Index (CPI) inflation decreased to 3 per cent in January from 3.4 per cent in December, the Office for National Statistics (ONS) said.

Trades Union Congress general secretary Paul Nowak said: “Inflation easing is welcome news for working people.

“And it’s right that the government has reduced the pressure – cutting energy bills, freezing rail fares and prescription charges, and raising the minimum wage.

“But after years of falling living standards millions of families are still struggling to make ends meet.

“With households squeezed there’s less money being spent on the high street – holding back businesses and choking off growth.

“The Bank of England must now act.

“Quick fire interest rate cuts would put money back into people’s pockets, give businesses the confidence to invest and help Britain finally move on from a cost-of-living crisis that has dragged on for far too long.”

ONS chief economist Grant Fitzner said: “Airfares were another downward driver this month with prices dropping back following the increase in December.

“Lower food prices also helped push the rate down, particularly for bread and cereals and meat.

“These were partially offset by the cost of hotel stays and takeaways.”

Political reporter Athena Stavrou reports:

A government minister has celebrated today’s UK inflation figures as “good news”.

The Consumer Price Index (CPI) fell to 3 per cent in the latest figures published by the Office of National Statistics.

It followed a surprise rise in December to 3.4 per cent.

“Today is good news, because we have a total focus on reducing the cost of living for people,” Welsh secretary Jo Stevens told Sky News.

“Taken with what we’re doing around freezing rail fares for the first time in 30 years, £150 coming off energy bills, freezing fuel duty and prescription charge freezes in England, these are all contributing to tackling the cost of living, which is people’s major concern at the moment.”

Transport, food, non-alcoholic beverages and education led the downward contributions.

Sir Mel Stride MP, shadow chancellor of the Exchequer, said: “Inflation remains above target thanks to Labour’s choices. Families are still feeling the pinch because of Labour’s economic mismanagement.

“This comes after the Office for National Statistics confirmed unemployment has risen to a five-year high, with youth unemployment now above the European average, and GDP per capita falling. Wes Streeting was right that Labour have no growth strategy.

“Britain is not being governed – the economy is weaker and working people are paying the price. Only the Conservatives have a plan for a stronger economy, and a leader with the backbone to deliver that plan and get Britain working again.”

Chancellor Rachel Reeves said: ”Cutting the cost of living is my number one priority.

“Thanks to the choices we made at the budget we are bringing inflation down, with £150 off energy bills, a freeze in rail fares for the first time in 30 years and prescription fees frozen again.

“Our economic plan is the right one, to cut the cost of living, cut the national debt and create the conditions for growth and investment in every part of the country.”

UK inflation has fallen to 3 per cent, prompting hopes that an interest rate cut will follow.

The fall in the Consumer Price Index (CPI) data, published by the Office of National Statistics, follows a surprise rise in December to 3.4 per cent.

It shows a return to the gradual downward trend seen at the end of last year, with analysts estimating it remains on course to hit the government’s 2 per cent target by April.