
Investing.com – Sterling slid to the day’s lows against the dollar on Tuesday after data showing that UK inflation slowed in December for the first time in six months, meaning that Britain’s cost of living squeeze eased.
was at 1.3756 by 04:54 AM ET (09:54 AM GMT), pulling further away from Monday’s peaks of 1.3819, the strongest level since Britain’s vote to exit the European Union in June 2016.
The slowed to an annual rate of last month the Office for National Statistics reported, down from November’s six-year high of 3.1% and the first decline since June.
The reading was in line the economists’ forecasts.
Underlying inflation, which strips out food and energy costs, slowed more than expected to from a year earlier.
The drop in inflation showed that the impact of the steep fall in the pound in the aftermath of the Brexit vote is now fading, but consumer prices are still rising faster than wages, which grew by 2.3% in the past year.
The Bank of England has said it expects inflation to have peaked late last year and expects it to slowly fall over the next three years to just above its 2.0% target.
The BoE is widely expected to keep interest rates unchanged at 0.5% at its February meeting as it awaits indications of a pick-up in wage growth.
Sterling was steady against the euro, with at 0.8888.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Latest posts by investing.com (see all)
- Forex – Dollar Edges Back as Hopes for Trade Deal Rise - February 18, 2019
- Forex – Yuan Gains, U.S. Dollar Slips on Trade Deal Prospects - February 18, 2019
- Dollar eases as trade deal prospects bolster risk, sterling gains - February 18, 2019