Pound softens slightly after below expectation British inflation data

LONDON, April 16 (Reuters) - Sterling dropped slightly on Thursday after data showed British inflation slowed in March, though the currency remained up on the day against the dollar thanks to earlier gains.

British inflation slowed to an annual rate of 2.6% in March from 2.8% in February below analysts expectations of 2.7%.

The pound was last at $1.3266, up 0.25% on the day having been at $1.329 immediately before the data. GBP=D3

It was softer on the euro, which was up 0.5% on the pound at 85.66 pence. EURGBP=D3