Price rises ease but inflation still near 40-year high

Price rises in the UK have slowed for a third month in a row but inflation remains close to a 40-year high, according to the latest official figures released today.

Inflation edged down to 10.1% in the year to January from 10.5% in December.

The Office for National Statistics explains the fall is mainly due to the price of fuel and cost of restaurants and hotels easing.

But it added this drop was offset by rising prices of alcohol and tobacco. And food inflation also remained stubbornly high in January – at 16.7%.