UNIONS urged the Bank of England to implement “quick-fire interest rate cuts” today after official figures showed that inflation has fallen to its lowest since March last year.

Dropping petrol, food and airfare prices saw CPI inflation fall to 3 per cent in the 12 months to January — down from 3.4 per cent the previous month, the Office for National Statistics (ONS) said.

TUC general secretary Paul Nowak  said:   “The Bank of England must now act.

“From next month we need a series of quick-fire interest rate cuts. 

“That would put money back into people’s pockets, give businesses the confidence to invest and help Britain finally move on from a cost-of-living crisis that has dragged on for far too long.” 

The reading puts inflation back on a downward trajectory after an increase in the previous month.

It has raised hopes that central bankers will cut interest rates next month from their current rate of 3.75 per cent.

“Inflation easing is welcome news for working people,” Mr Nowak added. 

“And it’s right that the government has reduced the pressure — cutting energy bills, freezing rail fares and prescription charges, and raising the minimum wage. 

“But after years of falling living standards millions of families are still struggling to make ends meet. 

“With households squeezed there’s less money being spent on the high street — holding back businesses and choking off growth.”

Chancellor Rachel Reeves said: “Cutting the cost of living is my number one priority.”

The country’s unemployment rate struck a five-year-high of 5.2 per cent amid another increase in the jobless rate among young people, the ONS revealed on Tuesday.