UK inflation falls but remains in double digits at 10.1%

Official annual rate drops in January for third straight month, although households still under pressure

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The UK's annual inflation rate fell for a third consecutive month in January, easing pressure on the Bank of England to raise interest rates, but remained in double digits and near the highest levels for 40 years.

The Office for National Statistics (ONS) said annual inflation as measured by the consumer prices index fell to 10.1%, continuing a decline from 10.5% in December and its recent peak of 11.1% in October. City economists had forecast a modest drop to 10.3%.