European Central Bank (ECB) Vice-President Luis de Guindos (Image: Lehtikuva/Emmi Korhonen via REUTERS)
The pound euro exchange rate was left flat today as UK inflation data from the Office for National Statistics showed consumer prices edging up at their slowest rate since December 2016. Sterling came under pressure when the UK Consumer Price Index (CPI) rose by 1.7 percent in August compared to 2.1 percent in July, the largest drop in annual inflation since late 2014. Consumer prices fell in 10 of the 12 regions, with the largest slumps seen in Northern Ireland and Wales.
However, falling inflation and the fastest wage growth in 11 years provided British consumers with a pre-Brexit boost to their spending power.
Commenting on this, Deloitte’s chief economist, Ian Stewart noted: “Sharply lower inflation is