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UK inflation at lowest for 2 years
22 May 2012

The Pound has fallen in morning trading today, as the prospect of further QE was raised by the lowest UK consumer inflation figures for 2 years.

CPI eased to 3% in April, down 0.5% from March. Government borrowing for the last fiscal year was also revised down, and public sector finances showed a record surplus for April too.

On Thursday we have UK GDP, which could be another major influence on exchange rates. Rates for money transfers in US Dollars and Euros abroad have both fallen in the last week, and unless GDP is revised up, we could see this theme continue.

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