U.K. inflation slows unexpectedly; sterling drops

April 12, 2011, 4:35 a.m. EDTThe British pound /quotes/comstock/21o!x:sgbpusd (GBPUSD 1.6256, -0.0083, -0.5079%) extended a decline versus the U.S. dollar after the Office for National Statistics said U.K. annual inflation slowed to 4% in March from a reading of 4.4% in February. Economists had forecast the annual inflation rate to remain at 4%. On a monthly basis, consumer prices rose 0.3% in March versus expectations for a 0.5% rise. The pound changed hands at $1.6248 versus the dollar, a loss of 0.5% from Monday.