LONDON, June 17 (Reuters) - British gilt futures reversed losses in early trade on Tuesday after inflation fell more sharply than expected in May to a 4-1/2 year low.
Consumer price inflation dropped to 1.5 percent last month from 1.8 percent in April, its lowest level since October 2009, the Office for National Statistics said. Economists in a Reuters poll had expected the index to fall to 1.7 percent.
Following the data, British gilt futures jumped to a session-high of 109.21, having traded around 108.98 before the release. It was last up 10 ticks on the day at 109.14. (Reporting by Ana Nicolaci da Costa, Editing by Belinda Goldsmith)