Investing.com - The pound fell to session lows against the other major currencies on Tuesday after data showing that the U.K. fell back into negative inflation in September dampened expectations for higher interest rates from the Bank of England.
GBP/USD was down 0.59% to 1.5258 from around 1.5287 ahead of the data.
The Office for National Statistics reported that the consumer price index fell by 0.1% in September from a year earlier, after a flat reading in August. Economists had forecast an unchanged reading.
It was the first time since April that the annual rate of inflation fell below zero.
Consumer prices were down 0.1% from a month earlier the ONS said, compared to expectations for a flat reading.
The ONS said the largest contribution to the fall in inflation came from lower petrol prices, while lower prices for gas and clothing and footwear also pushed down the inflation rate.
The subdued inflation outlook eases pressure on the BoE to hike interest rates from record lows.
Sterling was weaker against the euro, with EUR/GBP jumping 0.89% to 0.7465 from around 0.7452 earlier.