FTSE 100 slips on inflation worries, Premier Meals tops midcaps

Individuals store at market stalls, with skyscrapers of the CIty of London monetary district seen behind, in London, Britain, January 15, 2021. REUTERS/Toby Melville

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  • Premier Meals lifts midcap shares
  • UK inflation surges to 9%, highest since 1982
  • FTSE 100 down 1.1%, FTSE 250 off 0.6%

Might 18 (Reuters) – UK’s blue chip index fell on Wednesday as information confirmed inflation jumped 9% final month, fuelling contemporary worries concerning the financial toll from surging costs, whereas Premier Meals topped midcap shares after it introduced plans to lift costs.

The FTSE 100 index (.FTSE) closed 1.1% decrease snapping a three-day successful streak, whereas the mid-cap FTSE 250 index (.FTMC) fell 0.6%.

British inflation leapt in April to its highest annual fee since 1982. Hovering power payments had been the largest driver, reflecting final month’s improve in regulated power tariffs. learn extra

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“The chance is that ought to they (the Financial institution of England) increase rates of interest too rapidly at a time when shoppers are already feeling the pinch, then this might crimp demand and push the financial system into recession,” Ambrose Crofton, international market strategist at J.P. Morgan Asset Administration, mentioned.

“Doing too little, nonetheless, dangers entrenching inflation expectations and driving a extra persistent wage-price suggestions loop.”

A report on Tuesday confirmed Britain’s unemployment fee fell to its lowest since 1974 within the first three months of this yr, reinforcing expectations that the central financial institution might want to proceed elevating charges to struggle inflation. learn extra

Sterling slipped after a latest run-up towards the greenback.

Premier Meals (PFD.L), the maker of Mr Kipling truffles and OXO cubes, added 10.1% to turn out to be the highest midcap gainer, because it mentioned it is going to increase costs of its merchandise as a part of plans to deal with rising enter prices. learn extra

Pub operators Marston’s (MARS.L) and Mitchells & Butlers (MAB.L) slid 7.2% and 1.4%, respectively, after they warned that the price of dwelling disaster and bills stemming from the Ukraine battle would crimp their companies. learn extra

European journey firm TUI’s UK-listed shares fell 12.9% after it introduced a share sale to pay again parts of a German state bailout that it had obtained through the peak of the pandemic. learn extra

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Reporting by Sruthi Shankar and Amal S in Bengaluru; Enhancing by Uttaresh.V and Shounak Dasgupta

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