UK inflation has eased back for the third straight month to 10.1% in January as lower air fares and fuel costs helped slow rises in the cost of living, according to official figures. The Office for National Statistics (ONS) revealed Consumer Prices Index (CPI) inflation dropped sharply from 10.5% in December in a bigger-than-expected fall.
Most economists had been expecting a drop to 10.3% last month. It marks a further welcome decline from the eye-watering peak of 11.1% seen last October, caused by soaring energy prices.
The ONS said food price inflation remained at a 45-year high of 16.8% in January. However the rate including non-alcoholic drinks dipped to 16.7% from 16.8%.
