U.K. consumer price index showed dropped to zero in June, coming in line with forecasts, following a 0.1 percent increase in May.
Other inflation gauges signaled a 1.3 percent drop in PPI input for the month of May from a revised of minus 1.1 percent, while annual RPI rose 1.0 percent, similar to May’ reading.
Some analysts see the drop in inflation was buoyed by the discount made by clothing shops with the beginning of the summer.
Still, the low inflation is one of the hurdles facing major central banks, following the significant drop in oil prices at the beginning of this year.
Brent crude dropped for a second straight month in June to close at $63.22, compared to the opening of $65.52, where it is currently trading around $56.62.
Following the release of the data, the GBP/USD dropped to trade around 1.5464 from the session’s high of 1.5489.
Later in the day, BOE governor Mark Carney will speak, where he will probably face questions about Greece’s new bailout, the low inflation and the housing market.