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Consumer prices rose by an annual 1.3 percent in October, compared with a five-year low of 1.2 percent in September and in line with economists' forecasts in a Reuters poll, the Office for National Statistics said on Tuesday.
Sterling rose to $1.5669 after the data, from $1.5648 beforehand.
The euro pared gains to trade at 79.81 pence, still up 0.2 percent on the day.
Gilt futures rose 3 ticks to a day's high of 116.84 before retreating to trade around 116.76, up 26 ticks on the day.