LONDON: Sterling dipped on Wednesday after data showed UK inflation did not accelerate in January as expected, possibly relieving some of the pressure on the Bank of England to keep rates where they are for longer.

British consumer price inflation stood at an annual rate of 4.0% in January, unchanged from December, the Office for National Statistics said.

Economists polled by Reuters had forecast an increase to 4.2%.

Sterling rises to near 6-month high vs euro after labour market figures

The pound was last down 0.2% at $1.2565, compared with $1.2603 before the data.

Against the euro, sterling was down 0.18% at 85.21 pence.