UK stocks lag European peers after hot inflation data

UK's FTSE 100 index slipped on Wednesday, lagging its European peers, as a surge in British inflation to 10-year highs fuelled bets of an interest rate hike as early as next month. British consumer prices rose by a bigger-than-expected 4.2% in annual terms in October, from a 3.1% increase in September, as household energy bills rocketed.

The internationally focussed FTSE 100 index, which has constituents that draw a large part of revenue in dollars, slipped 0.1% as the sterling hit a one-week high against the dollar. Financial markets have currently priced in a near 100% chance that the Bank of England (BoE) will raise rates to 0.25% from 0.1% in December.

Energy stocks slipped 0.3% after U.S. gasoline stocks fell more than expected last week, heightening pressure on the Biden administration to release oil from emergency reserves. British renewable power generator and network operator SSE Plc fell 5.3% after reporting a 25% drop in renewable power output.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)