After falling against the euro and the dollar yesterday following poor inflation data, the pound is still weaker against the euro this morning.
The data showed that inflation rose to 9.1% in May, up slightly from April’s figure of 9% and a fresh 40-year high. The Bank of England has warned that inflation could hit 11% later this year.
Data this morning revealed that the UK government borrowed more than expected to balance the books in May. Due to rising inflation, the government borrowed £14bn, £3.7bn more than forecast.
Later today, PMI figures will be released, providing a snapshot of how the UK economy has performed so far in June.
