LONDON, May 24 (Reuters) - The pound rose slightly on Wednesday after data showed that British inflation came in stronger than expected in April, raising the chances of another interest rate hike from the Bank of England.
Britain's year-on-year inflation rate slowed to 8.7% in April from 10.1% in March. However, economists polled by Reuters expected a drop to 8.2%.
Sterling was last up 0.32% at $1.2456 GBP=D3 , having traded at $1.2439 before the data was released.
The euro slipped against the pound and was last down 0.18% at 86.59 pence EURGBP=D3 .
The Bank of England raised interest rates to 4.5% earlier this month.
Traders on Wednesday saw an 83% chance that it will raise borrowing costs by 25 basis points again in June, according to pricing in derivatives markets.
