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Slowdown in inflation to 3% boosts hope of interest rate cut next month
The Guardian
|February 19, 2026
The UK inflation rate fell to 3% in January from 3.4% the previous month, giving a boost to hopes of an early cut in interest rates.
The increase in prices for food and soft drinks in the UK slowed sharply to 3.6% in the year to January, down from 4.5% in December
(ALAMY)
The slowdown was in line with the majority of City forecasts and marks the lowest level since March 2025. The Office for National Statistics (ONS) said falls in petrol prices, air fares and food had been behind the drop.
In a welcome boost for household budgets, the rise in prices for food and nonalcoholic drinks slowed sharply to 3.6% in the year to January, down from 4.5% in December and reaching a nine-month low.
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