FTSE 100 Dips As Inflation Hits Double Digits
(RTTNews) - U.K. stocks edged lower on Wednesday and the pound strengthened against its most major counterparts after the nation's consumer inflation accelerated in July, raising expectations for a 50 basis-point rate hike by the Bank of England at the meeting in September.
Data from the Office for National Statistics showed that the U.K. consumer price index climbed to 10.1 percent on year in July, from 9.4 percent in June. Inflation was forecast to rise to 9.8 percent.
Markets expect the BoE to raise its key rate by 50 basis points to 2.25 percent from 1.75 percent in September.
Separate data showed that average U.K. house prices increased by 7.8 percent over the year to June, down from 12.8 percent in May.
The benchmark FTSE 100 slipped 8 points, or 0.1 percent, to 7,527 after closing 0.4 percent higher on Tuesday.
Balfour Beatty shares jumped more than 9 percent. The homebuilder raised its interim dividend after reporting a sharp rise in first-half profit.
Cineworld plummeted 43 percent to a record low after the movie theatre operator warned of low audiences due to 'limited' film releases.
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