Inflation fell on all three measures in the year to January 2026, according to the Office for National Statistics (ONS). The Consumer Prices Index including owner occupiers’ housing costs (CPIH) is showing at 3.2%, down from 3.6% in December 2025. Similarly, both the Consumer Prices Index (CPI) and Retail Prices Index (RPI) also fell by 0.4 percentage points to 3.0% and 3.8% respectively (down from 3.4% and 4.2% in December). The main downward effects came from transport, food and housing. While the fall in the rate at which prices are rising is welcome, the cost of living itself remains elevated with prices for many essential items higher than before the pandemic.
