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Hawkish remarks made by Bank of England (BoE) policymaker Martin Weale in a speech in London on Monday have been attributed with helping sterling in fx trading, according to Reuters.
Mr Weale called for interest rates to be raised sooner rather than later, so that tightening does not need to be rushed in the long term.
Sterling reached $1.6423, which represents an increase of 0.3 per cent.
The May CPI figures showed food was the biggest upward pressure on inflation, while transport services offered the most significant downward movement.
Daragh Maher, deputy head of fx research at Credit Agricole, told Reuters: "The BoE has already talked about inflation being at five per cent at some point in the future so anything edging towards that level will not cause too many ruffles."
Posted by Greg Secker
