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Originally published by Capital Businessbusiness
February 18, 2026
3d ago
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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