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UK annual inflation slows as food price growth decelerates in January

18th Feb 2026 07:29

(Alliance News) - UK consumer and producer output price inflation slowed on an annual basis, the Office for National Statistics reported on Wednesday.

On a monthly basis in January, the consumer price index showed a 0.5% decline, in line with FXStreet-cited consensus and flipping from a 0.4% rise in December.

Annually, consumer prices rose 3.0% as expected, slowing from a 3.4% rise in December.

Notably, the annual inflation rate for food and non-alcoholic beverages decelerated to 3.6% in January from 4.5% in December. Monthly, consumer prices for food and non-alcoholic beverages fell 0.1% in January, compared to a 0.9% on-month rise in January 2025.

The core consumer price index posted a 3.1% increase, also in line with consensus and slowed from 3.2%.

The input producer price index showed prices rising 0.4% on-month, as expected, against a revised 0.5% decline in December. Annually, prices decreased 0.2% compared with December's revised 0.5% increase.

Output producer prices showed no monthly change, consensus having forecast a 0.2% rise, compared with the prior month's revised 0.1% decrease. For the year to January, output prices climbed 2.5%, slowing from a revised 3.1% increase.

Core output prices rose 0.2% on-month against December's revised 0.2% decrease, and inflation slowed on-year to 2.9% from a revised 3.1%.

Finally, retail prices declined 0.5% on-month in January, missing consensus for a 0.4% decrease and against December's 0.7% rise. Annually, prices rose 3.8%, below the consensus of a 3.9% rise, and slowed from a 4.2% increase.

By Emma Curzon, Alliance News reporter

Comments and questions to [email protected]

Copyright 2026 Alliance News Ltd. All Rights Reserved.

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