The pound fell back below $1.30, UK government bond yields dropped sharply and London’s equity futures jumped after data showed Britain’s inflation has dropped to its lowest in more than a year.

Headline annual inflation rose 7.9% last month, less than economists forecasts of 8.1%, and below May’s 8.7%, according to the Office for National Statistics. The core reading, which strips out volatile prices like food and energy, dropped from 7.1% to 6.9%, which was 0.2 percentage points below forecasts.