(RTTNews) - Tuesday, the pound rose to a 2-month high against the euro and the Swiss franc as U.K.'s annual inflation accelerated in October for the first time since February 2009. UK annual inflation rose to 1.5% in October from 1.1% in September, according to a report released by the Office for National Statistics today. Annual inflation accelerated for the first time since February 2009 and stood slightly above the expected rate of 1.4%. On a monthly basis, consumer prices were up 0.2%, faster than the 0.1% expected. Core inflation that excludes volatile energy, food, alcohol and tobacco prices, stood at 1.8% on a yearly basis, up from 1.7% in September. However, the broader measure of inflation known as the Retail Price Index, which includes the cost of housing, is still 0.8% lower than a year ago, compared with a fall of 1.4% in September. Economists were looking an annual 1% decline. The index stood at 216, up from 215.3 in the prior month. Excluding mortgage interest payments, retail prices increased at a faster pace of 1.9% annually compared to 1.3% in September. The UK currency soared to 0.8852 against the euro during Tuesday's early trading. This set a highest point for the UK currency since September 15, 2009. The next upside target for the UK currency is seen around the 0.877 level. The euro-pound pair closed Monday's deals at 0.8904. A report from the Eurostat showed that Eurozone unadjusted trade surplus stood at EUR 3.7 billion in September, up from a deficit of EUR 2.3 billion in August, revised from EUR 4 billion deficit reported initially. A year ago, the trade deficit was EUR 6 billion. Exports dropped 18% year-on-year to EUR 111.8 billion in September, while imports fell 24% to EUR 108.1 billion. By about 4:30 am ET, Tuesday the pound advanced to a 2-month high of 1.7023 against the Swiss franc. This may be compared with yesterday's close of 1.6952. On the upside, 1.7408 is seen as the next downside target for the Swiss currency. The franc fell against other major currencies today as the Swiss retail trade turnover declined for a second straight month in September. The Federal Statistical Office said Switzerland's real retail trade turnover declined 1.6% in September from the corresponding month of the previous year. Sales were down 1% in August, following July's 1% increase. Sale of food increased 1.1%, reversing 0.3% fall in August. Meanwhile, clothing and footwear sales declined 8.9%. Extending its Asian session downtrend, the pound fell to 149.41 against the yen during early European deals. But by about 3:15 am ET, the UK currency gained ground and rose to 150.24 as of 4:30 am ET. The pair that closed yesterday's deals at 149.82 is now quoted at 149.91.

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