Sterling tested 12-day highs against the euro on Monday as British data failed to dent investors' increasing optimism about the interest rate outlook relative to the eurozone.
British output prices rose an unadjusted 0.3 percent on the month, slowing the annual rate of increase to 2.5 percent from 2.9 percent in February.
British house price inflation slowed to 3.6 percent in February from 4.3 percent in January, the government said, despite evidence from mortgage lenders that the property market is re-accelerating.
Economists are divided about whether the next move in Bank of England interest rates will be a rise or a cut from the current 4.5 percent, but December short sterling futures are increasingly pricing in a rise.
Meanwhile, European Central Bank President Jean-Claude Trichet last week dashed expectations of a eurozone rate rise from the current 2.5 percent as early as May.
Sterling rose as far as 69.34 pence, within two ticks of 12-day highs, but eased to 69.42 pence by 1405 GMT, steady from the US close. Sterling was steady within recent ranges against the dollar, at $1.7456. It hit 12-day highs against its trade-weighted index, at 98.1.
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