UK borrowing costs drop as inflation pressures ease, reversing gains after market turbulence – as it happened

Cooling UK inflation paves way for February interest rate cut, economists say; US inflation rises but key core' measure eases

In her response to the inflation figures, Rachel Reeves, the chancellor, vowed to fight every day" to deliver economic growth and put more money in the pockets of working people". She said:

There is still work to be done to help families across the country with the cost of living. That's why the government has taken action to protect working people's payslips from higher taxes, frozen fuel duty and boosted the national minimum wage.

In our Plan for Change, we were clear that growth is our number one priority to put more money in the pockets of working people. I will fight every day to deliver that growth and improve living standards in every part of the UK.