UK inflation slows more than expected as fuel prices drop

BoE governor Andrew Bailey hopes that inflation will fall sharply this year as energy prices ease and the economy tips into recession.

The UK’s inflation rate slowed for a third month but remained stubbornly in double digits five times above the Bank of England’s (BoE) targeted level.

The Consumer Prices Index rose 10.1% from a year ago in January, the lowest since September, and down from 10.5% the month before and a 41-year high of 11.1% in October. Economists had expected a slight slowdown to 10.3%.