LONDON, May 24 Reuters The pound eased on Friday after data showed wet weather hit UK consumer spending far more than expected in April, but evidence of sticky inflation, and the surprise announcement this week of a July general election kept sterling near twomonth highs.

Sales volumes dropped by 2.3 in April after a 0.2 fall in March, which was downwardly revised from a flat reading, the Office for National Statistics said.

The data was worse than any economist predicted in a Reuters poll, which had pointed to a drop of around 0.4 on the month.

However, a separate measure of consumer sentiment on Friday showed confidence is at its highest since late 2021.

Sterling was last flat at 1.2697, having traded as high as 1.2761 after Wednesday39;s data showed UK inflation rose 2.3 in April, above forecasts for a rise of 2.1, but still below March39;s 3.2 rate.

The euro held in modestly positive territory against the pound , at 85.21 pence.

Investors have slashed the chances of a June rate cut by the Bank of England to below 10, from around 50 before Wednesday39;s inflation data.

Twoyear gilt yields , the most sensitive to shifts in expectations for the course of monetary policy, are heading for their largest weekly rise so far this year, as investors sold British government bonds.

With sterling being catapulted to multimonth highs against both the dollar and the euro after a measly 0.2 miss in inflation, I knew there was little steam in the engine from the start. The…