UK inflation falls for third consecutive month but prices remain at sky-high level

Inflation fell slightly for the third month running in January, according to official figures.

The figure dropped to 10.1 per cent in January, from 10.5 per cent in December, easing pressure on the Bank of England to make further hikes to interest rates.

Although inflation is falling, price rises remain at sky-high levels, meaning Britons will continue to feel the cost-of-living pinch.

The Office for National Statistics also said there were indications that costs facing businesses are rising more slowly, driven by falls in crude oil, electricity and petroleum prices.

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