Sterling hit a two-month low against the euro on Monday and fell towards its lowest level versus the dollar since late July as investors remain concerned about the health of the British economy.
Monday's data releases gave conflicting signals about inflationary prospects in Britain, but interest rate markets continued to price in further monetary easing from the Bank of England.
Factory gate prices rose at their sharpest rate in five months in September, in a sign that inflationary pressures are picking up as firms try to pass on higher energy costs.
Meanwhile, house price inflation slowed to an annual 2.8 percent in August, the lowest in more than nine years.
"The case of a much weaker sterling is now getting stronger," UBS analysts wrote in a research note.
At 1349 GMT sterling traded roughly steady on the day at 68.77 pence after falling to 69.00, its lowest level since August 11.
It was 0.3 percent down on the day at $1.7547. A fall below last week's low of $1.7510 would bring sterling to its lowest level since late July.
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