FTSE 100 Declines As Inflation Hits New 40-year High
(RTTNews) - U.K. stocks declined on Wednesday as a fall in oil and metal prices weighed on the commodity sector. Surging inflation also revived fears about aggressive monetary tightening and slowing growth.
U.K. consumer price inflation rose further in May at the fastest pace in 40 years on rising energy and food prices, deepening the cost of living crisis.
U.K. consumer price inflation rose to 9.1 percent in May, in line with expectations, from 9.0 percent in April, data from the Office for National Statistics revealed.
On a monthly basis, consumer prices gained 0.7 percent, but much slower than the 2.5 percent increase posted in April.
Another report from the ONS showed that output prices advanced at a faster pace of 15.7 percent year-on-year after rising 14.7 percent in April.
The benchmark FTSE 100 dropped 96 points, or 1.3 percent, to 7,056 after closing 0.4 percent higher on Tuesday.
BP Plc tumbled 3.2 percent and Shell slumped 4.2 percent as oil prices plunged more than $6-a-barrel amid a push by U.S. President Joe Biden to bring down soaring fuel costs.
Miners Anglo American, Antofagasta and Glencore lost 3-5 percent.
JD Sports rallied 3.6 percent after the sportswear retailer posted an annual profit that more than doubled.
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