UK inflation cools markedly in January, boosting odds of Bank of England rate cut

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The U.K. inflation rate cooled to 3% in January, according to the latest figures from the Office for National Statistics (ONS).

Economists polled by Reuters had expected the consumer price index to fall to 3%, down from 3.4% in the twelve months to December.

Core inflation, excluding energy, food, alcohol, and tobacco, stood at 3.1% in January, down from 3.2% in December.

The data will be closely analysed by the Bank of England as it looks for further signs to confirm its view that the U.K.’s inflation rate will fall close to the central bank’s 2% target by April.