Investing.com - The pound trimmed gains against the dollar on Tuesday after data showed that the annual rate of consumer inflation in the U.K. slowed in December, falling to the lowest level since November 2009.
GBP/USD was up 0.10% to 1.6399, off session highs of 1.6448.
Cable was likely to find support at 1.6345, Monday’s low and a one-week low and resistance 1.6507, Monday’s high.
The Office for National Statistics said the annual rate of consumer inflation in the U.K. rose 2.0% last month, slowing from 2.1% in November. Economists had expected an unchanged reading.
It was the first time since 2009 that the U.K. inflation rate was in line with the Bank of England’s official target of 2%.
Consumer prices rose 0.4% month-on-month, below expectations for a 0.5% rise.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 1.7% in December, down from 1.8% in November.
The ONS said falling food prices pushed down the rate of inflation, countering higher costs for gas and electricity bills.
The U.K. house prices index climbed 5.4% in November the ONS also said, below expectations for a 5.9% gain, slowing from a 5.5% increase in October.
The euro retreated from session lows against sterling, with EUR/GBP down 0.10% to 0.8334, after falling as low as 0.8316 earlier.
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