UK Core Inflation Falls from 9-Month Peak

The UK’s annual core inflation rate edged down to 3.1% in January 2026 from 3.2% in the previous two months, in line with market expectations. It marked the lowest reading since September 2021, as core goods inflation slowed notably (1.6% vs 2.2% in December), while services inflation eased slightly (4.4% vs 4.5%). On a monthly basis, core consumer prices fell 0.6%, reversing a 0.3% increase in December.

The UK’s annual core inflation rate stood at 3.2% in December 2025, unchanged from the previous month and matching market expectations. The latest reading remained the lowest level since December 2024, even as price pressures picked up slightly across both goods (2.2% vs 2.1% in November) and services (4.5% vs 4.4%). On a monthly basis, core consumer prices increased 0.3%, rebounding from a 0.2% decline in November.

The UK’s annual core inflation eased to 3.2% in November 2025, down from October's reading and less than market expectations of 3.4%. It marked the lowest level since December 2024. The slowdown was broad-based, with goods inflation easing (2.1% vs 2.6% in October) and services inflation edging down (4.4% vs 4.5%). On a monthly basis, core consumer prices fell 0.2%, reversing October’s 0.3% rise and posting the first decline since January.