UK inflation falls from 10.5% to 10.1% amid ongoing cost of living crisis – business live

Live, rolling coverage of business, economics and financial markets as transport and motor fuel prices contribute to decline in inflation

UK inflation fell for a third consecutive month in January, although in double digits it remained at among the highest levels in 40 years amid the cost of living crisis.

The latest prices data comes as the Bank of England considers a further rise in interest rates to tackle inflation at the highest levels since the early 1980s, in a move adding to pressure on borrowers after 10 successive rate rises in the past 18 months.

While any fall in inflation is welcome, the fight is far from over. High inflation strangles growth and causes pain for families and businesses - that's why we must stick to the plan to halve inflation this year, reduce debt and grow the economy.

Household electricity and gas costs remain by far the biggest drivers, while transport costs saw a further easing. Producer price inflation, however, remains much higher at 14.1%.

The stubbornly high rate means that we are now seeing a compounding effect on what was already a spiking inflation rate this time last year. The peak may have started to pass but prices have settled at a much higher level than two years ago.