The pound slipped against other major currencies in the European morning session on Tuesday as U.K. consumer price inflation slowed more than expected in April, reaching its lowest since September.
Annual inflation fell to 2.4 percent from 2.8 percent in March, the Office for National Statistics said. Inflation was expected to ease to 2.6 percent. It has moved closer to the central bank's 2 percent target.
The consumer prices gained 0.2 percent month-on-month, slightly weaker than the prior month's 0.3 percent increase and also below the 0.4 percent rise forecast by economists.
Core inflation that excludes energy, food, alcoholic beverages and tobacco slowed to 2 percent from 2.4 percent a month ago. The rate was marginally below the consensus forecast of 2.3 percent.
The pound declined to a 6-day low of 0.8470 against the euro, down 0.38 percent from an early 4-day high of 0.8438. The next support for the pound is seen around 0.855 level.
Germany's producer price inflation slowed for the third consecutive month in April, data released by the Federal Statistical Office showed today.
Producer prices rose only 0.1 percent in April from a year ago, following a 0.4 percent increase in March. This was the lowest annual rate since March 2010. Economists had forecast an increase of 0.2 percent for April.
The U.K. currency that finished Monday's deals at 1.5255 against the greenback reached as low as 1.5182. The pound may eye next support area around 1.50.
The pound that retreated from an early 4-day high of 1.4783 against the franc fell to 1.4689, its lowest since May 16. On the downside, the pound may find support around 1.44 level.
The pound fell to 155.95 against the yen upon the data, reversing from an early 4-day high of 156.53. If the pound extends downtrend, next support lies around 154.00 level.
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