UK inflation cools to 10.1% in January: ONS

LONDON -- The United Kingdom's (UK) Consumer Price Index (CPI) rose by 10.1 percent in the 12 months to January, down from 10.5 percent in December, the Office for National Statistics (ONS) said on Wednesday.

Although still at a high level, inflation eased again in January. This was partly driven by the declining air and coach travel prices after a previous steep rise, ONS Chief Economist Grant Fitzner said.

The annual inflation rate for transport was 3.4 percent in January, down for a seventh consecutive month from a peak of 15.2 percent in June 2022, and the lowest rate since February 2021, the ONS data showed.

Petrol prices as well as restaurant, cafe and takeaway prices continue to fall, Fitzner noted.

These were offset by rising prices for alcohol and tobacco, following on from seasonal price cuts in December and a more subdued rise at the same time last year, he said.

The UK has been in the grip of consistently high inflation for the past year and the annual rate has remained in double digits since summer. It has caused a worsening cost-of-living crisis for many households, and persistent and widespread strikes.

To bring down inflation, the Bank of England raised its benchmark interest rate for a 10th consecutive time in early February to 4 percent, its highest level since autumn 2008.