The rate of inflation slowed slightly last month to 10.1 per cent, official figures reveal on Wednesday.
It was the third successive monthly fall in the inflation rate but the CPI remains close to 40-year highs and is not expected to fall more significantly until the summer.
Rishi Sunak has pledged to halve the rate of inflation this year.
But the small drop in the official measure of inflation - the Consumer Prices Index (CPI) - from 10.5 per cent in December - means most people are still getting worse off.
Food and drink prices in particular are still running at close to record levels, surging 16.8 per cent in January, only marginally better than the 16.9 per cent seen in December.
The small drop in the CPI, which was in line with City forecasts, keeps it in double digit territory for the fifth month on the trot since last September.
That puts more pressure on the Bank of England’s Monetary Policy Committee to push through another interest rate hike when it meets in March.
Earlier this month its benchmark rate went up by half a point to four per cent but more economists believe at least one more rise is inevitable to rein inflation in and bring it back down towards the two per cent target rate.
Chancellor Jeremy Hunt said:“While any fall in inflation is welcome, the fight is far from over. High inflation strangles growth and causes pain for families and businesses - that’s why we must stick to the plan halve inflation this year, reduce debt and grow the economy.”
ONS Chief Economist Grant Fitzner said: “Although still at a high level, inflation eased again in January. This was driven by the price of air and coach travel dropping back after last month’s steep rise.
“Petrol prices continue to fall and there was a dip in restaurant, café and takeaway prices. The cost of furniture decreased by more than this time last year, in line with traditional New Year discounting.
“These were offset by rising prices for alcohol and tobacco, following on from seasonal price cuts in December and a more subdued rise at the same time last year.
“There are further indications that costs facing businesses are rising more slowly, driven by falls in crude oil, electricity and petroleum prices. However, business prices remain high overall, particularly for steel and food products.”
Wednesday’s inflation figure comes the day after ONS wages data revealed that regular pay rose by 6.7 per cent in the three months to December. However, the rampaging cost of living means that the higher wage packet was worth 2.5 per cent less in real terms, It was the eighth successive monthly fall in living standards.
The UK appears to have some of the “stickiest” inflation in the developed world with prices held high by the weak pound which makes imports more expensive. Inflation peaked at 11.1 per cent in October and has only fallen back slowly.
On Tuesday, it was announced that US inflation fell from 6.5 per cent to 6.4 per cent last month.
