UK Inflation Slows, Pound Weakens

The Great Britain pound weakened today after data showed that inflation slowed last quarter more than was predicted by analysts, reigniting concerns about the UK economy.
The Consumer Price Index rose 2.4 percent in the first three months of 2013 from a year ago, slowing from the growth of 2.8 percent in the fourth quarter of 2012. The median forecast was at 2.6 percent. Other reports today were also negative, spoiling optimism caused by the previous macroeconomic data. The minutes of the last Bank of England’s policy meeting will be released tomorrow and they may reveal what policy makers were thinking about the future monetary policy.
GBP/USD dropped from 1.5253 to 1.5172 as of 10:00 GMT today. GBP/JPY was at 155.75 after rising from 155.98 to 156.52.

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