Pound Slips as UK Inflation Stays Below Forecast
The British pound weakened against both the U.S. dollar and the euro on Wednesday after new data showed that UK consumer price inflation remained steady in September.
According to the Office for National Statistics (ONS), annual inflation held at 3.8%, unchanged from August. Economists surveyed by Reuters had expected the rate to edge up to 4%, but softer-than-expected figures kept investors cautious.
Following the data release, sterling fell 0.23% against the dollar, trading at $1.3342, and slipped 0.3% against the euro to 86.99 pence.
The weaker inflation reading dampened expectations for near-term rate hikes by the Bank of England, adding pressure to the pound across global currency markets.
