Pound Shifts Slightly with Inflation Slowdown

Sterling slightly declined after March data showed a decrease in British inflation to 2.6%, lower than expected. Despite this, the pound gained on the dollar, standing at $1.3266, but was weaker against the euro, which rose 0.5% to 85.66 pence.

On Thursday, the British pound experienced a modest drop following the release of data indicating a slowdown in inflation for March. Inflation rates fell to an annualized 2.6% from 2.8% in February, failing to meet the 2.7% predicted by analysts.

Despite the setback, the currency managed to hold its ground against the US dollar, trading at $1.3266, an increase of 0.25% from earlier in the day. However, the pound lost ground to the euro, which climbed 0.5% to reach 85.66 pence.

The data reflect ongoing economic challenges as markets adjust to fluctuating expectations and external pressures. Analysts continue to monitor the situation closely as the British economy navigates post-Brexit reality and pandemic recovery.

(With inputs from agencies.)