Sterling remains under pressure this morning after the latest UK inflation figures came in slightly weaker than expected, reinforcing the view that the Bank of England is unlikely to rush into raising interest rates.
Headline CPI inflation slowed to 2.6% in the year to June, down from 2.8% in May and below the market expectation of 2.7%. On a monthly basis, inflation rose by just 0.1%, compared with 0.3% a year earlier. There were further signs that price pressures are easing, with goods inflation slowing from 2.0% to 1.7%, while services inflation, a measure closely watched by the Bank of England, eased from 3.7% to 3.6%.
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