Sterling ticked higher on Wednesday after data showed UK inflation held at 6.7% in September, showing no acceleration, but above expectations for a retreat to 6.6%.
The pound GBP=D3 was last up 0.18% on the day at $1.2206, having briefly touched $1.2208 after the numbers.
At the same time, British finance minister Jeremy Hunt has said that the government still expected inflation to “keep falling this year”.
Wednesday’s statement came after September data showed annual consumer price inflation was unchanged from August’s 18-month low.
“As we have seen across other G7 countries, inflation rarely falls in a straight line, but if we stick to our plan then we still expect it to keep falling this year,” Hunt said in a statement.