Economic news

Pound dips as inflation slows to weakest in year

The pound slumped to a four-day nadir on Wednesday, reversing its gains for the week after UK inflation surprisingly slowed to the weakest level in a year in March, raising doubts whether the Bank of England will increase interest rates in May.

Photo: Reuters

Sterling slipped 0.7 percent to below $1.42 in early trades, its trough in almost a week, and a shock shift from the previous session when it soared to a post-Brexit-vote peak of $1.4377.

The Office for National Statistics reported on Wednesday annual consumer price inflation dropped to 2.5 percent from 2.7 percent in February.

The FTSE 100 index was up 0.3 percent at 7,246.90.

Fresh data may ease the possibility for more interest-rate hikes later this year. The Bank of England is widely anticipated to increase the benchmark for a second time in six months at May policy meeting.

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