Sterling slips as output slows on inflation fears

THE pound pared gains today after official figures showed the UK economy grew by just 0.3% in the first three months of the year. Sterling lost ground to stand 0.20 cents up at $1.2925 on the back of the slowdown, blamed on consumers tightening their belts to deal with rising inflation. The Office for National Statistics flagged falls in retail sales and the hotel sector.