The pound has slipped as low as $1.3113 today following weaker than expected inflation data.
According to the Office for National Statistics, UK inflation fell back in September to 2.4 per cent. In August Consumer Price Inflation was running at 2.7 per cent.
The biggest contributors to falling inflation came from food and drinks (non-alcoholic), transport, recreation, culture, and clothing.
Commenting on today’s results, ONS statistician Mike Hardie said:
— Office for National Statistics (ONS) (@ONS) October 17, 2018
Yael Selfin, Chief Economist at KPMG UK, also commented: “Consumer Price Inflation (CPI) rose by a less than expected 0.1% in September from the previous month, thanks to a fall in food prices and transport costs, while clothing and footwear prices rose more modestly than in the previous year.
“Year-on-year CPI therefore fell to 2.4% in September, with our forecast seeing it reach 2.1% by the end of the year, and taking it within a whisker of the Bank of England’s 2% target.
“Today’s better than expected inflation data should give the MPC some breathing space, however, the relatively strong wage data released yesterday is likely to keep the Bank of England vigilant to any further signs of increasing inflationary pressures.”