Sterling soars to seven-year high on surprise inflation rise

UK inflation rises 0.1% in July to beat forecasts

Sterling jumped to a seven-year high against a trade-weighted basket of currencies after it emerged UK CPI inflation had not stagnated at the zero mark for another month as expected, rising by 0.1% in July.

While economists had been expecting inflation to remain at zero for another month, the latest report from the Office for National Statistics (ONS) revealed it had edged up in July. UK inflation beats expectations with 0.1% July rise As a result, sterling jumped to a seven-year high against a trade-weighted basket of currencies. It traded at $1.5717  against the US dollar on Tuesday following the results, before dropping off slightly to its current level of $1.5677. The currency also spiked against the euro on the news, trading at €1.4232 immediately after the announcement, but h...