U.K. stocks retreated on Wednesday after official data showed that consumer price inflation accelerated more than expected in April on higher household utility and fuel prices.
U.K. consumer prices advanced 1.5 percent year-on-year in April, more than double the March’s 0.7 percent increase. Prices were forecast to gain 1.4 percent.
On a monthly basis, consumer price growth increased to 0.6 percent from 0.3 percent in March and in line with economists’ expectations.
The pound vs dollar rate rose above the 1.42 resistance level for the first time since February, as strong jobs and inflation figures added to bets on when the Bank of England might start relaxing its stimulus program.
The benchmark FTSE 100 dropped 78 points, or 1.1 percent, to 6,955 after finishing marginally higher Tuesday on the heels of upbeat jobs data.
Ferguson shares climbed 3 percent as the plumbing and heating products supplier raised annual guidance after reporting strong revenue growth in its third quarter.
Weaker copper and iron prices weighed on the mining sector, with Anglo American, Antofagasta and Glencore falling 2-3 percent. Oil firm BP Plc and Royal Dutch Shell both were down around 1.6 percent.
Infrastructure investor John Laing Group soared 11.2 percent after U.S. private equity firm KKR & Co. agreed to buy the company for about 2 billion pounds ($2.8 billion).
Premier Foods surged 4.3 percent. The company declared a payout to shareholders after a 13-year break.
FTSE 100 Drops On Inflation Jitters
2021-05-19 09:15:26
