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UK inflation defies expectations

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UK inflation defies expectations

UK inflation defies expectations
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The British pound slipped to a one-week low on Wednesday as lower-than-expected inflation data undermined the chances of an interest rate rise.

The consumer prices index remained at 2.4 per cent in May for the second month running, suggesting the UK economy failed to regain momentum in the second quarter.

The inflation data followed news on Tuesday of an unexpected slowdown in wages growth, which could also deter the Bank of England from raising rates.

Markets are also wary about the effect of Brexit negotiations, with clear divisions emerging during debates in the House of Commons.