The Pound Sterling Exchange Rate was in the region of 1.1638 against the Euro as of 10:20 am
For the first time since records began 17 years ago UK inflation has remained unaltered for four consecutive months.
According to the Office for National Statistics, annual consumer price inflation came in at 2.7 per cent in January, the same level recorded for the previous three months and the highest level achieved since May of last year. The Bank of England’s inflation target is 2 per cent.
Whilst the largest downward pressures on inflation came from slower price rises for miscellaneous goods and services, the 8.5 per cent increase in the price of alcohol and tobacco was the most significant upwards contributor.
Over the last few years consistently high inflation has had a real impact on consumer spending, and with the BoE warning that inflation could easily remain above target for the next two years it appears that the restraints may not be lifted for some time.
Prior to the release of the data the Pound shed 0.4 per cent against the Euro and tumbled to a six month low against the US Dollar. Following the report’s publication Sterling was little changed against these two rivals.
Meanwhile, other data compiled by the statistics office revealed that input prices in the UK jumped by 1.3 per cent last month and 1.8 per cent on the year, largely due to crude oil increasing by 3.1 per cent.
A separate report released this data-heavy morning also showed that house prices increased in December at an annual rate of 3.3 per cent, while London home values increased by 6.4 per cent in the same period.
And although a private gauge of UK house prices (assembled by RICS) recorded a decline in January from minus 1 to minus 4 as a result of the snow and poor weather conditions, it also noted that falling interest rates on mortgages are boosting demand.
Peter Bolton King, the RICS director, commented: ‘Activity levels are still encouraging. There is some optimism out there that things could continue to improve.’
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1638
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5594
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5246
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8709
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5724
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.7282
The Pound Sterling to Swiss Franc is currently trading at 1.4326
The Pound Sterling to Japanese Yen exchange rate is currently trading at 147.0700
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