No Inflation in Great Britain, Pound Slides

The Great Britain pound dropped after an official report showed that consumer prices in the United Kingdom were unchanged from the previous year. The data weighed on the currency, sending it into the second consecutive daily decline.

The Office for National Statistics reported that the Consumer Price Index showed no change in February from the same period a year ago. The report frustrated economists who were counting on at least some growth even if a minimal one. The absence of inflation means that the expected interest rate hike is pushed further into the future, and this hurt Britain’s already soft currency.

GBP/USD went down from 1.4954 to 1.4902 as of 11:46 GMT today. GBP/JPY dropped from 178.98 to 177.97.

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