UK inflation falls to 3% in January

UK inflation fell to 3% in January, down from 3.4% in December, indicating a further drop in the the rate at which prices are rising.

Although the rate of inflation has fallen, prices themselves are not coming down, but simply rising at a slower pace.

Inflation has steadily been decreasing toward the government's target of 2%.

December's sudden uptick was attributed to one-off seasonal factors such as flight costs over Christmas and an increase in tobacco tax announced in the Budget.