Cost of living pressure on household budgets remains as inflation falls to 10.1%

dailyrecord.co.uk:

UK inflation slowed by more than expected in January to hit a five-month low in a further sign that the cost- of living crisis has passed its peak, official figures have shown.The Office for National Statistics (ONS) revealed Consumer Prices Index (CPI) inflation dropped sharply to 10.1% last month - the lowest reading since September last year - from 10.5% in December as lower air fares and fuel costs helped slow down the pace of price rises.

It marks a further welcome decline from the eye-watering peak of 11.1% seen last October, caused by soaring energy prices, and may see the Bank of England take its foot off the pedal with further big interest rate rises.But with inflation still in double digits and the rate near 40-year highs, households are yet to feel the pressure ease.The ONS said food price inflation remained at its highest level for 45-years, at 16.8% in January, with the cost of everyday essentials still ramping up.Chancellor Jeremy Hunt said the battle to reduce inflation is “far from over”.

He said: “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.”The ONS said falls in passenger fares contributed to the drop in inflation, with air tickets seeing the largest fall.Air fare annual inflation soared to 44.1% in December, but more than halved to 18.4% in January, the figures show.Road transport fares such as coach travel also declined sharply, with inflation at 5.7%, down from 11.3%, while bus fares also eased, thanks largely to the £2 cap on single bus fares, which came into effect in England from January 1.Motor