FTSE 100 Slides As Inflation Slows Less Than Forecast
(RTTNews) - U.K. stocks declined on Wednesday while the British pound strengthened against other major currencies after data showed that U.K. consumer price inflation slowed less than expected in April, raising uncertainty over a possible rate cut in June.
Data from the Office for National Statistics showed that the U.K. consumer price inflation weakened to the lowest since July 2021.
Consumer prices rose 2.3 percent on a yearly basis in April, slower than the 3.2 percent increase in March. However, inflation was stronger than economists' forecast of 2.1 percent.
Output price inflation was the highest since May 2023 while input prices declined for the eleventh consecutive month in April, separate set of data revealed.
Meanwhile, public sector net borrowing rose to GBP 20.5 billion in April, the fourth highest April borrowing since monthly records began in 1993, the Office for National Statistics said.
The benchmark FTSE 100 was down 27 points, or 0.3 percent, at 8,389 after finishing marginally lower on Tuesday.
Industrial and electrical products provider RS Group lost 4.2 percent after underlying annual profits fell 25 percent.
Marks & Spencer soared 8.3 percent. The retailer announced its first dividend since 2019 after reporting its highest profit in more than a decade.
British Land rose about 2 percent after selling its stake in Sheffield's Meadowhall shopping centre for £360m.
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