WIREDGOV

Martin Sartorius, Lead Economist, CBI responds to latest inflation data for January 2026

“Inflation ticked down in January, broadly in line with the Bank of England’s projections. We expect this downward momentum to continue in the coming months, reflecting the fading impact of last year’s energy and utility price increases.

“January’s slowdown in inflation, alongside cooling labour market conditions, increases the likelihood that the Monetary Policy Committee will cut rates again over the next couple of months. Beyond then, the scope for further Bank Rate reductions will become more limited, as the Committee looks to ensure that inflation returns sustainably to the 2% target.”

Inflation and price indices