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Originally published by Capital Business
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business
February 18, 2026
3d ago

Lower food and fuel prices drive inflation down to 3%

Lower food and fuel prices drive inflation down to 3%

Economists said the decrease raised the likelihood the Bank of England will cut interest rates at its March monetary policy meeting. Kenya breaking news | Kenya news today |..

✨ Key Highlights

UK inflation dropped to 3% in January, down from 3.4% in December, mainly due to lower costs for food, fuel, and airfares. This decline has increased expectations that the Bank of England will cut interest rates in March.

  • The Office for National Statistics (ONS) reported this as the lowest inflation rate since March 2025.
  • Economists like chief economist Yael Selfin of KPMG anticipate the Bank of England cutting interest rates three times this year, potentially reaching 3% by 2026.
  • Chancellor Rachel Reeves welcomed the news, emphasizing that "cutting the cost of living is my number one priority."

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