FTSE climb slowed by inflation worry
The London market tiptoed into positive territory this morning despite mixed signals on UK inflation.
Economists were disappointed that inflation in May failed to retreat from its seven-year high of 1.9%, saying it supported the view that interest rates would stay on hold for the rest of this year.
But other measures of inflation were better than expected and this gave the FTSE 100 Index the impetus to fight back to stand 1.2 points higher at 5051.6 by mid-morning.
Oil majors were benefiting from the cost of US light crude remaining above $50 a barrel, with BP ahead by 2.5p at 580.5p and Shell lifting 4p to 503.5p.
ITV was leading the market – up 1.5p at 117.25p – as investors look ahead to the decision by UK regulator Ofcom on new licence fee terms.
Tour operator First Choice added 0.5p to 187p after it reported strong summer bookings and posted narrower half-year losses than had been expected in the City.
