Sterling adds to gains after inflation bounce

LONDON (Reuters) – Sterling hit day’s highs against the two euro and dollar on Tuesday after UK inflation rose above expected to 1.6 %, its highest since mid-2019 and within sight with the Bank of England’s 2 percent target.

Official data showed price growth was propelled by higher air fares as well as the collapse inside the pound since last year’s vote to give the European Union.

Sterling, already up almost 1 percent against a broadly weaker dollar in morning swap London, rose as tall as $1.2190 after the numbers from $1.2170 beforehand. In addition, it gained half a percent ignore the to 87.78 pence per euro.