LONDON: Sterling and yields on British government bonds dipped on Wednesday after wage data fell just short of forecasts, failing to provide more evidence of a pick up in demand-led pressure on prices following a jump in inflation last month.
The pound fell to a session low of $1.7113, down almost a cent from highs reached on Tuesday after June numbers surprised markets by showing inflation had risen to 1.9 percent, within touching distance of the Bank of England's 2 percent target.
Wednesday's figures showed that, in the three months through May, total pay including bonuses rose an annual 0.3 percent, the weakest growth since the depths of the financial crisis five years ago and below a consensus forecast of 0.5 percent.
That offered no new support for expectations of a rise in official interest rates this year.
London's main FTSE stock exchange index was unchanged but British government bond futures briefly spiked to a session high after the release, peaking at 110.50, 26 ticks up on the day.
The gains proved short-lived, however, and at 0836 GMT the future stood at 110.38, 14 ticks up on the day and little changed from its level before the data.
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