LONDON: The pound bounced on Friday after data showed UK retail sales grew at their fastest pace in nearly three years in January, beating expectations.

Retail sales rose at a monthly rate of 3.4% in January, according to the Office for National Statistics, compared with forecasts for an increase of 1.5% in a Reuters poll.

Sterling falls after milder UK inflation numbers

The rise was the biggest since April 2021. Sterling was last flat on the day at $1.2596, having traded around $1.25815 prior to the numbers.