LONDON - The pound rose slightly on Wednesday after data showed British headline and services inflation in June were slightly above expectations, though core inflation was in line.

British inflation held at 2.0% year on year last month, official data showed on Wednesday, above the 1.9% expected by analysts polled by Reuters.

Closely watched services inflation was at 5.7% year on year, compared to the expected 5.6%

Sterling rose to as much as $1.29895 was last up 0.08% against the dollar at $1.2981.

It also firmed slightly versus the euro, with the European common currency down a fraction at 83.99 pence.

(Reporting by Alun John and Rae Wee, editing by Amanda Cooper)