FTSE 100 Slides After Inflation Data

(RTTNews) - U.K. stocks fell slightly on Wednesday while sterling rose against the euro and the dollar after data showed a further slowdown in U.K. inflation ahead of the general election.

Consumer price inflation softened to 2.0 percent in May, as expected, from 2.3 percent in April, data from the Office for National Statistics showed.

Inflation reached the Bank of England's 2.0 percent target for the first time since July 2021.

On a monthly basis, consumer prices gained 0.3 percent in May, the same rate as seen in April. Prices were expected to climb 0.4 percent.

Capital Economics' economist Ruth Gregory said the fall in inflation to 2.0 percent in May probably won't be enough to persuade the Bank of England (BoE) to cut interest rates from 5.25 percent on Thursday.

The BoE had kept the interest rate unchanged over the last six straight meetings. The current 5.25 percent is the highest since early 2008.

Separate set of data showed that factory gate prices rose 1.7 percent year-on-year in May, up from an increase of 1.1 percent in April.

At the same time, input prices edged down 0.1 percent on year in May, compared to a revised fall of 1.4 percent in April.

The benchmark FTSE 100 was down 19 points, or 0.2 percent, at 8,172 after rising 0.6 percent on Tuesday.

In corporate news, precision instrumentation and controls group Spectris plunged 8.5 percent after issuing a profit warning.

Warhammer maker Games Workshop soared 8.4 percent after saying it expects continued revenue and profit growth across the business this year.

Vodafone rose 1.3 percent after the telecom group sold an 18 percent stake in Indus Towers to repay debts.