The pound declined against its major rivals on Wednesday, despite the release of hotter-than-expected inflation data out of the U.K.

Data from the Office for National Statistics showed that consumer prices rose 10.1 percent year-over-year in September, following a 9.9 percent increase in August. The rate was forecast to rise to 10 percent.

The CPI increased 0.5 percent month-on-month in September, the same rate as seen in the previous month. Economists had expected an increase of 0.4 percent.

Core inflation that excludes energy, food, alcoholic beverages and tobacco rose to 6.5 percent in September from 6.3 percent in the previous month. Economists had forecast prices to climb by 6.4 percent.

On a monthly basis, core inflation slowed to 0.6 percent in September from 0.8 percent in August. The rate was forecast to ease to 0.5 percent.

The pound slipped to 168.30 against the yen and 1.1243 against the franc, down from its early highs of 169.38 and 1.1285, respectively. The pound is seen finding support around 166.00 against the yen and 1.11 against the franc.

Retreating from its prior highs of 1.1358 against the greenback and 0.8680 against the euro, the pound weakened to 1.1260 and 0.8720, respectively. The pound is likely to find support around 1.10 against the greenback and 0.90 against the euro.

Looking ahead, Eurozone final inflation data for September is set for release in the European session.

Canada inflation data and U.S. building permits and housing starts, all for September, as well as the Fed Beige book report will be released in the New York session.

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