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Inflation in the United Kingdom has dropped to its lowest point in ten months. This development is largely due to reduced food and gas prices. Official figures show consumer prices rose 3% in January, down from 3.4% in December. This decline strengthens expectations that the Bank of England will lower interest rates in March.

Britains annual inflation rate eased in January to its lowest since March last year. However, underlying price pressures stayed strong, a key concern for the Bank of England. Services inflation slowed less than expected. This data comes as the economy shows signs of weak growth and job losses. Markets anticipate interest rate cuts later this year.