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According to Reuters, sterling slipped by around half a cent to $1.6240 against the US dollar earlier today (April 12th 2011), while the euro rose to 88.85p. June gilt futures climbed to 116.73 after touching an earlier high of 116.75.
The FTSE was largely unchanged following the publication of the ONS figures - which indicated the first fall in consumer price inflation since last July - and was down by 44.52 points on Monday's close at 6,008.92 by early afternoon.
In its report, the ONS noted that although house prices and services continued to boost inflation in March, falling food prices and air transport contributed to driving the headline rate down from 4.4 per cent in February to four per cent last month.
British Chambers of Commerce chief economist David Kern hailed the drop in inflation, but urged the Bank of England to keep the base rate at 0.5 per cent until the economic rebound is on a firmer footing.
Posted by Clive Arneil
