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UK inflation rate drops to 3% as consumers struggle to cope

Feb 18, 2026, 7:18 AM10
(Update: Feb 18, 2026, 7:18 AM)
country in north-west Europe
central bank of the United Kingdom

UK inflation rate drops to 3% as consumers struggle to cope

  • The UK's inflation rate fell to 3% in January 2026, down from 3.4% in December 2025, according to the ONS.
  • While some analysts predict an interest rate cut, many businesses continue to face rising costs that dampen the impact of falling inflation.
  • The situation reflects a complex economic landscape where lower inflation does not necessarily indicate immediate relief for consumers and businesses.
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