UK inflation falls to 10-month low as food and fuel costs drop

Consumer Prices Index inflation fell to 3% in January from 3.4% in December, the Office for National Statistics reported, with lower petrol and food prices cited among the drivers.

UK inflation has eased to its lowest rate since last March, the Office for National Statistics (ONS) reported. The Consumer Prices Index (CPI) fell to 3.0% in January, down from 3.4% in December. Analysts point to lower petrol and food costs as key contributors. The reading arrived amid discussion about the Bank of England's path for interest rates and reactions from political leaders. Key figures: - CPI inflation was 3.0% in January, down from 3.4% in December. - Average petrol prices fell by 3.1 pence per litre between December and January; diesel fell by 3.2 pence per litre. - Food and non-alcoholic drink inflation slowed from 4.5% in December to 3.6% in January, with notable falls in bread, cereals and meat. - Consumer prices were 0.1% lower month-on-month in January, driven in part by cheaper bread and cereals. - Accommodation prices rose in January, with monthly accommodation inflation at 1.1% after a 0.1% dip in December. Summary: The lower inflation reading reflects weaker prices for fuel, some foods and air fares, and will be noted by policymakers and government ministers. Economists cited in the report say the trend keeps inflation on track to approach 2% in the coming months and has increased hopes of Bank of England rate reductions; political figures responded with contrasting comments. What's next for policy decisions will depend on further data and central bank deliberations.