Pound plunged to a 10-month low today against the dollar at $1.3051 after latest data showed that UK inflation failed to rise as expected. Against the euro, the pound dropped 0.3 per cent to 89.20 pence.
According to ONS data earlier today, annual consumer price inflation held steady in June at 2.4 per cent.
ONS head of inflation Mike Hardie added: “Consumers have been feeling the benefit of the summer clothing sales, and computer game prices have also fallen.
“However, gas and electricity and petrol prices all rose, with consumers seeing the highest price at the pump for nearly four years, with inflation remaining steady overall.”
— ONS (@ONS) July 18, 2018
The pound was already down before the inflation data on a rallying dollar and worries about British PM Theresa May’s ability to push through her Brexit plans after she only narrowly won a crucial parliamentary vote yesterday.