Sterling fell against the dollar on Tuesday after the CPI rate of inflation remained unchanged in July, reducing pressure on the Bank of England to increase interest rates to curb the rising cost of living. Show Hide Inflation is when prices rise. The government's preferred measure of inflation, and the one the Bank of England takes into account when setting interest rates, is the Consumer Prices Index (CPI). The Retail Prices Index (RPI) is often used in wage negotiations. Even so, the BoE’s monetary policy committee had said earlier this month it expected CPI to climb to about 3% in October before gradually retreating.

Source: The Guardian August 15, 2017 17:10 UTC