The Consumer Prices Index (CPI), the UK's main measure of inflation, rose by 3% in the 12 months to January 2026, down sharply from 3.4% in the 12 months to December 2025.
ONS said today that on a monthly basis, CPI fell by 0.5% in January, compared with a fall of 0.1% in January 2025.
The news was welcomed by industry experts and Chancellor Rachel Reeves after an unexpected spike in inflation last month to 3.4%, blamed on higher pre-Christmas prices, particularly for air fares, alcohol and tobacco.
The latest inflation figures will provide reassurance for the government that inflation is coming under control although inflation remains well above the Bank of England's 2% target.
The sister Consumer Prices Index including owner occupiers' housing costs (CPIH) rose 3.2% in the 12 months to January, down from 3.6% in the 12 months to December 2025.
On a monthly basis, CPIH fell by 0.3% in January, while it was little changed in January 2025.
ONS said that transport and food and non-alcoholic beverages made the largest downward contributions to the monthly change in both CPIH and CPI annual rates.
Core CPIH (CPIH excluding energy, food, alcohol and tobacco) rose 3.3% in the 12 months to January 2026, down from 3.5% in the 12 months to December 2025. The CPIH goods annual rate fell from 2.2% to 1.6%, while the CPIH services annual rate fell from 4.5% to 4.3%.
Core CPI (CPI excluding energy, food, alcohol and tobacco) rose by 3.1% in the 12 months to January 2026, down from 3.2% in the 12 months to December 2025; the CPI goods annual rate fell from 2.2% to 1.6%, while the CPI services annual rate fell from 4.5% to 4.4%.
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