Sterling pushed through the 87p level against the euro for the first time in three years yesterday afternoon, a worrying but probably predictable development for Irish exporters, border retailers and the tourism sector here.

The UK currency has now lost 14% in value against the euro since the Brexit vote in June and could slip lower as the Bank of England’s ongoing bond-buying programme depresses UK interest rates and the return on bonds making sterling a less attractive currency for investors.

The UK's Consumer Price Inflation (CPI) rose 0.1% to 0.6% in July, as the increasing cost of fuel and second-hand cars drove up transport prices. The Retail Price Index (RPI) figure is up from 1.6% in June. Economists had been predicting the CPI figure would remain unchanged.

Mike Prestwood, head of prices at the Office for National Statistics said: "The Consumer Price Index has continued in July its recent slow upward trend since late 2015, with transport costs the biggest single factor this month.

"There is no obvious impact on today's consumer prices figures following the EU referendum result, though the Producer Prices Index (PPI) suggests the fall in the exchange rate is beginning to push up import price faced by manufacturers."

Additional reporting by IRN