British inflation eases by more than expected

AP News
Posted: May 21, 2013 5:00 AM

LONDON (AP) — Official figures show that consumer price inflation in Britain eased in April, largely on the back of lower fuel prices and airfares.

The Office for National Statistics said Tuesday that the annual rate fell to 2.4 percent in April from 2.8 percent the previous month. The fall was bigger than anticipated — the consensus in the markets was for a more modest fall to 2.6 percent.

Inflation nevertheless remains above the Bank of England's target of 2 percent.

The drop in inflation hit the pound, as investors speculated that it may prompt the central bank to enact another monetary stimulus soon.

After the figures were released, the pound was trading 0.5 percent lower at $1.5190. Prior to their release, the pound was trading around the $1.5213 mark.