Inflation in the UK ran at 2.6% in June, year-on-year, coming as an unexpected fall from 2.9% the previous month. The primary reason was attributed to lower oil prices after recent falls in the commodity price, yet items such as food and clothing are still increasing for the consumer. The news, which does not bode well for the Bank of England hiking interest rates any time soon, has weakened Sterling against major currencies to a degree, though comes in the midst of an otherwise turbulent day in FX markets. UK government debt became more attractive as the less likely rates are to rise, the more valuable fixed interest investments become. The FTSE 100, however, saw downward pressure and was down about 0.25% for the day.