UK consumer price inflation rises, house price inflation slows

A report on Tuesday showed that UK consumer prices rose at an annual rate of 1.8 percent in April, up from 1.6 percent in March and the first increase in the inflation rate in 10 months.

The increase, however, was partly due to a late Easter holiday that pushed up transport costs last month. Sterling initially rose after the report but gave up most of its gains later.

Indeed, another report on Tuesday showed that house prices -- an increasing source of concern for the Bank of England -- rose 8.0 percent in March from the previous year, down from a 9.2 percent increase in February.