LONDON, Feb. 18 (Xinhua) -- Britain's annual inflation rate fell to 3.0 percent in January amid easing price pressures, official data showed on Wednesday.

People walk with umbrellas near the Big Ben in London, Britain, Jan. 27, 2026, as Storm Chandra brings rain to much of the country. (Photo: Xinhua)

According to the Office for National Statistics (ONS), the Consumer Prices Index (CPI) rose by 3.0 percent in the 12 months to January 2026, down from 3.4 percent a month earlier. On a monthly basis, CPI fell by 0.5 percent in January, compared with a 0.1 percent dip a year earlier.

ONS said transport, along with food and non-alcoholic beverages, made the largest downward contributions to the annual inflation rate.

Core inflation, which excludes energy, food, alcohol and tobacco, also eased. Core CPI rose by 3.1 percent in January, down from 3.2 percent in December, while services inflation slowed to 4.4 percent from 4.5 percent.

The latest figures suggest inflation has fallen to its lowest level in several months, reinforcing expectations that monetary policy could soon shift toward easing.

Earlier this month, the Bank of England held its benchmark interest rate at 3.75 percent, but policymakers remain divided over the timing of future cuts amid signs of slowing economic momentum.

Recent labour market data showed Britain's unemployment rate rose to 5.2 percent in the fourth quarter of 2025, while wage growth moderated, indicating weakening demand pressures.

Economists expect inflation to continue easing in the coming months, as the central bank projects it will move closer to its 2 percent target later this year.