Financial Times FT.com

Sterling falls on weak inflation data

By Neil Dennis

Published: October 13 2009 11:23 | Last updated: October 13 2009 22:38

Sterling endured a volatile session on Tuesday, after weak inflation data prompted further speculation that interest rates could be kept on hold at 0.5 per cent until 2011.

UK consumer price growth fell to a five-year low of 1.1 per cent in September, dipping below the market’s estimate of 1.3 per cent, thanks to lower utility bills and moderating food costs.

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