Inflation in the U.K. has fallen to a 10-month low largely on the back of lower food and gas prices.
Britain's Chancellor of the Exchequer Rachel Reeves leaves 11 Downing Street for the House of Commons in London, Wednesday, Feb. 4, 2026. – Inflation in the U.K. fell to a 10-month low largely on the back of lower food and gas prices, official figures showed Wednesday, a downward move that has reinforced expectations that the Bank of England will cut interest rates in March.
The Office for National Statistics said the consumer prices index was 3% higher in January than the year before, down from 3.4% in December.The decline was in line with analysts' expectations and puts inflation well on the path to the central bank's target of 2% over the coming months. Whenat its last meeting earlier this month, the bank predicted that inflation would be back at target by April. The further fall in inflation will provide some relief for the Labour government, which has seen its poll ratings fall sharply since it returned to power in July 2024, partly because of cost-of-living pressures.Inflation is set to hit the target in April, largely because of government action. In her, Reeves announced that she would be cutting some taxes to get domestic energy bills down. With inflation down, an interest rate reduction in March is now widely expected. The bigger question in financial markets is how many further reductions there will be this year. “Inflation is set to fall further in coming months, falling back to 2% in the near future, which should open up further rate cuts later this year,” said Luke Bartholomew, deputy chief economist at asset management firm Aberdeen. Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.Mortgate rates dip to the 5% range for the first time since 2023Jacksonville TikToker uncovers account posting women, children without their consentLocal civil rights leader talks history and legacy of Jesse Jackson2026 High School 9:12 Media DayAbuse, neglect allegations prompt request for state to investigate Union County Animal ControlEpiscopal Boys Soccer Prepares for SemisIt might feel like Spring today, but hold off on planting: More cold is comingPassion 4 Pets: London is looking for a furever homeAccused gunman in murder-for-hire case withdraws guilty pleaIncreased focus on teen 'takeovers' to make sure they don't get out of controlJacksonville family loses everything in electrical fire at home of 18 yearsGreen Cove Springs couple to bike to DC for screening reform‘He’s a complete miracle’: Jacksonville toddler makes full recovery after near-drowningPaid parking has officially begun in downtown Fernandina BeachThis week is a good window to get your pruning started ahead of SpringCity leaders, community react to chaos outside Avenues Mall over weekendSunday’s rainfall insufficient to ease persistent droughtHenry Tenon withdraws guilty pleaMajor makeover coming to one of downtown St. Augustine’s busiest corridorsFamily of man killed by JSO questions use of deadly force given his mental health historyMayor Deegan, officials, warn residents about increased wildfire riskFamily demands answers after JSO officers fatally shoot man in driveway
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