The Pound rose against the dollar on Wednesday morning after UK inflation fell below the double digits to 9.9% in August, following a 40-year record of 10.1% in July.
The Sterling rose to $1.1546 earlier in the morning and was trading at $1.1543 in late morning trading.
UK inflation fell primarily on lower petrol prices, which saw inflation at the pump drop to 32.1% from 43.7% month-on-month as petrol costs slid 14.3p per litre. Meanwhile, diesel prices declined by 11.3p per litre on an annual basis, compared to a 1.5p per litre rise the last year.
The Pound hit a 37-year low of $1.14070 last week after soaring energy prices threatened to plunge the UK into a cold winter recession. However, the energy price cap freeze introduced by Prime Minister Liz Truss last Thursday served to assuage the immediate fear of critical damage to households over the next several months.