12th November 2013
The pound has weakened to its lowest level in two months against the dollar today (November 12th), following the release of the latest UK inflation report.
Official data from the Office for National Statistics shows the annual rate fell to 2.2 per cent in October. This is down from 2.7 per cent in the previous month and is the lowest level since September 2012. The consensus estimate was for a reading of 2.5 per cent.
According to the accompanying report, the drop can be attributed to lower costs relating to fuel, airfares, second-hand cars and university fees.
Inflation was 0.1 per cent higher month-on-month, compared to expectations for a 0.3 per cent rise.
The core inflation rate - which strips out the traditionally volatile energy, food, alcohol and tobacco - slowed to an annual rate of 1.7 per cent, down from 2.2 per cent in September and its lowest level in more than three years.
Following the publication of the report, the pound declined sharply against the dollar and the pairing was trading 0.73 per cent lower in forex trading markets at $1.5972 as of 10:00 GMT.
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