British pound sheds day’s revenues as UK inflation dips

British pound sheds day’s revenues as UK inflation dips

On Tuesday, the British pound declined to the day’s minimums, cutting early gains after data demonstrating that the annual rate of inflation in the UK edged down for the first time since October the previous month.

The currency pair GBP/USD slumped 0.25% being worth 1.3024, drifting away from an earlier peak of 1.3125.

The Office for National Statistics told that in June consumer prices rallied 2.6%, down from a nearly four-year peak of 2.9% in May.

Financial experts had expected the inflation rate to stay intact.

It turned to be the largest drop in inflation since February 2015. It relieved pressure on the Bank of England to lift interest rates.

Since the previous year’s Brexit vote inflation has accelerated abruptly because the steep sag in the British pound bolstered import prices, causing fears over a squeeze on living standards considering wages lagging soaring prices.

The Bank of England is expected to hold its next policy gathering on August 3. Previously, at the bank's June meeting up to three policymakers backing lifting rates.

The British pound was at the day’s minimums versus the common currency, with EUR/USD soaring 0.66% trading at 0.8850.

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