LONDON, May 22 (Reuters) - The pound jumped on Wednesday

after data showed UK inflation neared the Bank of

England's target in April, but did not slow as much as expected,

leaving the chances of a June rate cut unchanged at around 50%.

British consumer prices rose by 2.3% in annual terms in

April, slowing from a 3.2% increase in March, the Office for

National Statistics said.

The Bank of England and economists polled by Reuters had

forecast an annual rate of 2.1%.

Sterling rose by as much as 0.3% to a new two-month high of

$1.27520, and was last trading at $1.2749.

The euro fell against the pound to two-month

lows and was last down 0.3% on the day at 85.16 pence.

Headline consumer inflation fell, driven in large part

by a decline in household energy prices. But other measures of

price pressures, such as services inflation, picked up more than

expected, complicating the chances that the BoE could cut rates

as soon as June.

Pepperstone strategist Michael Brown said the data cast

some doubt on the BoE cutting rates as soon as the next Monetary

Policy Committee meeting in June.

"That said, one must recall that there is still one

further inflation report before the June MPC meeting, albeit the

bumpier- and slower-than-expected disinflationary path signalled

by today's data increases the likelihood that policymakers seek

to err on the side of caution, and delay any such cut until

August," Brown added.

FTSE-100 share futures dropped 0.36%,

underperforming EuroStoxx 50 futures which were flat.