FX.co ★ UK Core Inflation Rate Lowest in Over 4 Years

The UK’s annual core inflation rate eased to 3.1% in January 2026, down from 3.2% in the previous two months and matching market expectations. This was the lowest rate since September 2021, driven by a notable slowdown in core goods inflation (1.6% vs 2.2% in December) and a slight moderation in services inflation (4.4% vs 4.5%). On a monthly basis, core consumer prices declined by 0.6%, offsetting the 0.3% increase recorded in December.