Inflation in the United Kingdom (U.K.) fell for a third consecutive month in January to 10.1%.
The latest inflation reading was below economists’ expectations, but high food and energy prices continue to put pressure on Britain’s Consumer Price Index (CPI).
Economists polled by the Reuters news agency had forecast that inflation would drop to 10.3% in January from 10.5% this past December.
Inflation across the U.K. peaked at a 41-year-high of 11.1% last October.
Core CPI, which excludes volatile food, energy and alcohol prices, was 5.3% compared to 5.8% in December, according to government data.
The largest contributor to January’s inflation rate came from housing, gas and electricity, food and non-alcoholic beverages, while the biggest price drops were observed in transportation and restaurant prices.
Worker pay in the U.K. continues to lag the inflation rate, with growth in average total pay at 5.9% between October and December of last year.
The Bank of England most recently raised interest rates by 50 basis points on February 2 of this year to help bring down consumer prices.
The U.K. central bank moved its main interest rate to 4% and forecast that inflation will likely fall to an annualized rate of 4% by the end of this year.
