A bank employee counts pound notes at Kasikornbank in Bangkok, Thailand October 12, 2010. REUTERS/Sukree Sukplang/File Photo Acquire Licensing Rights
LONDON, Oct 18 (Reuters) – Sterling made slim gains on Wednesday after data showed UK inflation held steady in September, though above expectations for a slight retreat.
UK consumer price inflation held at 6.7% in September, an 18-month low, showing no acceleration. It was, however, above expectations for a retreat to 6.6%.
The pound by 0842 GMT was up 0.15% on the day against the dollar at $1.2205, having earlier risen to $1.2210 after the inflation data.
Against the euro, sterling was marginally lower at 86.71 pence.
The Bank of England is expected to leave interest rates at 5.25% in early November. It kept them on hold in September, following an unexpected drop in the August inflation rate.
A rise in fuel prices in Britain between August and September put upward pressure on the annual inflation rate, figures from the Office of National Statistics showed.
“Despite marginally beating consensus, there is probably nothing in this inflation report that would push the Bank of England into another hike in November,” ING analysts wrote in a note to clients.
Britain has the highest inflation of any nation in the Group of Seven (G7) advanced economies, and next year is expected to have the slowest growth, according to IMF projections last week.
Prime Minister Rishi Sunak has pledged to halve inflation by the end of the year, with many British households suffering a steep fall in their standard of living as wages have struggled to keep up with prices.
Reporting by Tom Wilson and Amanda Cooper; Editing by Harry Robertson and Deborah Kyvrikosaios
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