Pound falls first time in three days as shop prices drop

The pound fell for the first time in three days versus the dollar as a report showed U.K. shop prices dropped by a record last month, indicating inflation pressure remains subdued.

Sterling weakened all but two of its 16 major counterparts as separate data showed U.K. industrial output climbed less than analysts forecast in June. Industrial production increased 0.3 percent after sliding a revised 0.6 percent in May, the Office for National Statistics said.

The pound fell 0.3 percent to $1.6839 after climbing 0.4 percent in the previous two days. Sterling dropped to $1.6814 on Aug. 4, matching the lowest level since June 12. 

The British Retail Consortium said today prices at stores fell an annual 1.9 percent, the most since the series began in 2006. Food price inflation slowed to a record low 0.3 percent from 0.6 percent.

Manufacturing production increased 0.3 percent in June from the previous month, the U.K. statistics in London said. Factory output dropped 1.3 percent in May, the most since January 2013.

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