United Kingdom: Inflation slows in January from December
Latest reading: Consumer prices rose 3.0% on a year-on-year basis in January, following a 3.4% increase in the prior month. January’s reading was the weakest since March 2025 but still well above the Bank of England’s 2.0% target.
Relative to the previous month’s figures, there were reduced price pressures for recreation and culture (+2.6% on a year-on-year basis vs +2.7% in December), transportation (+2.6% vs +4.0% in December) and food and non-alcoholic beverages (+3.5% vs +4.6% in December).
Meanwhile, core consumer prices were up 3.0% in annual terms in January, following a 3.2% rise in the prior month.
Finally, consumer prices declined 0.46% in January in month-on-month terms, following a 0.43% rise in the previous month.