U.K. stocks declined on Wednesday as investor mood soured on signs on increasing inflationary pressure.
Official data showed earlier today that U.K. consumer inflation rose to 2.5 percent in June from 2.1 percent in May. The rate was forecast to climb to 2.2 percent.
The annual growth was largely driven by prices of food, second-hand cars and clothing and footwear.
On a monthly basis, consumer prices gained 0.5 percent, following a 0.6 percent rise in May. The expected rate was 0.2 percent.
The benchmark FTSE 100 dropped 35 points, or half a percent, to 7,089 after closing marginally lower on Tuesday.
Travel & leisure stocks were losing ground, with TUI tumbling 4 percent on reports the world’s largest holiday company has cancelled more holidays until August.
easyJet dropped 1.6 percent, Ryanair Holdings shed 0.6 percent and British Airways owner IAG lost 1.2 percent on worries over the Delta variant’s spread in the continent.
Market Analysis
FTSE 100 Drops As Inflation Rises Sharply
2021-07-14 09:25:06
