The pound dipped this morning after official figures showed inflation remained unchanged last month.
The consumer prices index held steady at three per cent in October, figures by the Office for National Statistics (ONS) showed, after rising by its most in more than five years in September.
The CPIH, which factors in housing costs, was also unchanged from the previous month at 2.8 per cent.
Meanwhile the inflation rate for food and non-alcoholic beverages continued to increase to 4.1 per cent, the highest since September 2013
Following the announcement, the pound edged lower against the dollar, falling 0.3 per cent to $1.3077, and dropped 0.6 per cent against the euro to €1.1175.
If the inflation figure hits 3.1 per cent, as many analysts expected, Bank of England governor Mark Carney is forced to write a letter to the chancellor explaining why prices are rising far faster than the target rate of two per cent.
This breaking news story is being updated as more information emerges – please refresh the page for the most recent version.