Financial News: Sterling rally stalls after inflation drops

The pound halted its recovery on Tuesday after data showing British annual consumer prices falling for the first time in over a year cemented the idea of further rate cuts from the Bank of England in traders minds.The October consumer price inflation figure, showing a month-on-month drop from 5.2 per cent to 4.5 per cent, the first since August 2007, means the Bank of England will feel less constrained in building on this month s 150 basis point cut before the year is up, analysts said.