UK consumer prices ease to 3% in January as prices fall 0.5%

19 Feb '26

2 min read

UK consumer prices ease to 3% in January as prices fall 0.5%

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Insights

UK CPI inflation eased to 3 per cent in January 2026 from 3.4 per cent in December, with prices falling 0.5 per cent MoM.
Core inflation edged down to 3.1 per cent, while goods inflation dropped to 1.6 per cent.
Transport inflation slowed amid lower fuel costs, with petrol and diesel prices declining over the month and motor fuel prices falling 2.2 per cent YoY.

The UK Consumer Prices Index (CPI) moderated, with the annual inflation rate easing to 3 per cent in January 2026 from 3.4 per cent in December. CPI fell by 0.5 per cent month on month, marking a sharper decline than the 0.1 per cent drop recorded in January 2025, according to the Office for National Statistics (ONS).

Core CPI, which excludes energy, food, alcohol and tobacco, also eased slightly to 3.1 per cent year on year (YoY) from 3.2 per cent. Goods inflation declined to 1.6 per cent from 2.2 per cent, while clothing and footwear prices dropped by 3.3 per cent, reflecting the same seasonal pattern observed in January 2025, the ONS said in a press release.

Transport inflation slowed markedly, with prices up 2.7 per cent YoY in January 2026 versus 4.0 per cent in December. On the month, transport prices fell by 1.8 per cent, compared with a 0.5 per cent decline in January last year.

Motor fuel prices turned down, reflecting lower pump prices than a year earlier. The average price of petrol fell by 3.1 pence per litre between December 2025 and January 2026, whereas it rose by 0.8 pence per litre over the same period a year earlier. Petrol averaged 133.2 pence per litre in January 2026, down from 137.1 pence per litre in January 2025.

Diesel prices fell by 3.2 pence per litre over the month, compared with a 1.5 pence per litre increase in January 2025. Diesel averaged 142.5 pence per litre in January 2026, versus 144.1 pence per litre a year earlier. Overall motor fuel prices fell by 2.2 per cent in the year to January 2026, after rising 0.9 per cent in the year to December.

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