April 17 Reuters Sterling hit a fresh onemonth high against the euro and rose versus a weakening dollar on Wednesday after UK inflation data suggested less monetary easing by the Bank of England BoE.

British consumer price inflation slowed by less than expected to a twoandahalfyear low of 3.2 in annual terms in March, down from a 3.4 increase in February.

The dollar dipped but was still within striking distance of its 512month high after Federal Reserve officials reiterated U.S. interest rates are likely to stay higher for longer.

The pound was last up 0.35 against the dollar at 1.24. It was up 0.16 at 85.30 pence per euro, after hitting its highest level since midMarch at 85.21 pence .

While both the main and core measures of inflation eased to their lowest levels since late 2021, the continued stickiness in services inflation, in particular, may elicit a cautious approach among Monetary Policy Committee members, said Matthew Ryan, head of market strategy at financial services firm Ebury.

We still see a realistic possibility of looser policy in the summer, although today39;s data has somewhat put a spanner in the works, he added.

In the first quarter of 2024, a tight labour market and a trade shock from energy prices led analysts to expect that the BoE would likely be cutting rates behind the European Central Bank and the Fed.

The backdrop has changed quite radically in recent weeks.

Markets are currently fully pricing a first move by the BoE by September , a…