UK Inflation Hits 3% Low as Rachel Reeves Targets Cost of Living

United Kingdom inflation dropped to 3% in January as lower food and energy prices drove the rate to its lowest level since March 2025.The decline, alongside rising unemployment and stagnant economic growth, has increased expectations that the Bank of England will cut interest rates from 3.75% in March.Chancellor of the Exchequer Rachel Reeves stated that reducing the cost of living remains a priority following tax cuts designed to lower household energy bills.