Pound hits 14-month high, gilts slump as inflation soars

The pound reached a 14-month high today while gilts fell, after data revealed UK inflation soared to 4.4% in February.

Sterling rose 0.2% against the dollar after the Office for National Statistics revealed CPI for February was more than double the Bank of England's 2% inflation target and up 0.4% from January's figure. Public sector net borrowing also posted a record figure of £11.7bn for February. The pound traded at $1.6359 at 09:42 in London, rising 0.3% on the day, while 10-year gilts saw yields rise 8 basis points to 3.61%, according to Bloomberg. Nick Ryder, global currency analyst from Smart Currency Exchange, says: "CPI inflation has hit the highest level since October 2008, and has seen s...