Pound drops after biggest inflation fall in a year

(Source: Yahoo! Finance)

*Pound falls after lower than expected inflation

The pound slid against the dollar following the biggest fall in UK inflation in a year. The consumer price index dropped to 2.4 per cent in April, a faster than expected move as analysts had expected a drop to just 2.6 per cent (from 2.8 per cent prior).

The retail price index also fell, from 3.3 per cent to 2.9 per cent. The Bank of England has now held interest rates for 50 months while inflation is not expected to return to the Bank's two per cent target for at least two years.