LONDON — Britain’s inflation price fell for a 3rd consecutive month in January, boosting optimism that the cost-of-living disaster has peaked and costs will fall sharply later this 12 months.

Inflation eased to 10.1% within the 12 months by means of January, from 10.5% a month earlier, the Workplace for Nationwide Statistics stated Wednesday. The patron costs index peaked at 11.1% in October.

The Financial institution of England forecasts costs will fall quickly within the second half of this 12 months as vitality prices start to reasonable and value will increase triggered by Russia’s invasion of Ukraine drop out of inflation calculations.

However the figures provide no instant aid to customers squeezed by inflation that is still at ranges final seen within the early Nineteen Eighties. The nation has been gripped by a wave of strikes in latest weeks as public sector staff starting from prepare drivers to academics, nurses and paramedics demand increased wages.

“One other fall in inflation over January means that the tide is popping on value pressures,” stated Alpesh Paleja, lead economist for the Confederation of British Business. “However with inflation and pipeline value pressures set to stay excessive this 12 months, households and companies are prone to really feel the ache for some time but.”

Whereas declines in the price of transportation, clothes and restaurant meals helped push inflation decrease final month, customers are nonetheless scuffling with rising meals and vitality costs.

Meals costs rose 16.8% within the 12 months by means of January, easing barely from the 16.9% determine reported a month earlier. Housing prices, which embrace fuel and electrical energy, elevated 11.8%.