Pound Up As Inflation Falls

The pound jumped this morning after the Office for National Statistics issued a report saying that UK inflation surprisingly fell below the government's 2% target last month, falling from 2.25 in May to 1.8% in June. That is the first time we've dipped below 2% in almost two years.

Cheaper food and energy prices helped to keep the cost of living low, driving down inflation.

That will potentially allow the BoE to continue with it's QE measures, at least for the time being, until inflation finally does kick in.

The pound jumped to $1.6323 and 1.1675 against the euro on the news.