UK inflation hits lowest in nearly a year at 3.0%

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Wed, February 18, 2026 at 7:33 PM GMT+9

STORY: British inflation fell to its lowest in January since March last year. Official data showed Wednesday (February 18) consumer prices rose 3% year-on-year, slowing from December’s 3.4%. That’s as the cost of transport, food and soft drinks increased more slowly. It’s strengthened the case for a rate cut by the Bank of England soon.The reading matched analysts’ expectations but came in higher than the BOE’s forecasts.The central bank also projects that the pace of price rises will slow sharply in April to near its 2% target.Food inflation - considered a key marker for public expectations on prices more broadly - was the weakest since April last year.Airline fares also fell sharply on the month after jumping in December.And core inflation, excluding energy, food and tobacco prices, was at its weakest since September 2021.But there remained some warning signs for the Bank of England in Wednesday’s data, with services inflation only edging down slightly.British inflation also ran higher than in the U.S. and the euro zone in January.

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