Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

FTSE and pound slide as 40-year high inflation spooks traders

The FTSE 100 ended the day down 80.26 points (Victoria Jones/PA)
The FTSE 100 ended the day down 80.26 points (Victoria Jones/PA)

The FTSE 100 and the pound both sank lower on Wednesday after traders digested the latest dramatic UK inflation figures, which stoked fears of a recession later this year.

Figures from the Office for National Statistics revealed that Consumer Price Index (CPI) inflation rocketed to 9% last month on the back of a surge in energy prices.

Retailers were once again among the losers over the fear rising prices will hit consumer spending in the coming months.

The FTSE 100 ended the day down 80.26 points, or 1.07%, at 7,438.09 points.

“The pound has dipped slightly lower as worries about a recession have reared up again after UK inflation jumped to the highest level in 40 years,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

“With the spectre of stagflation looming, there are expectations that the Bank may be forced to take more of a softly-softly approach to rising interest rates further with the risks that a very aggressive policy risks tipping the UK into a deeper downturn.”

The pound decreased by 0.2% against the dollar to 1.238, but increased 0.02% against the euro to 1.181.

Elsewhere, other markets in Europe pulled back after US Federal Reserve chairman Jerome Powell said he would not hesitate to raise rates to keep inflation down.

The German Dax decreased by 1.26% by the end of the session, while the French Cac fell 1.2%.

On Wall Street, the message also hit sentiment sharply, with the Dow Jones and S&P both opening lower.

In company news, Ambrosia and Bisto manufacturer Premier Foods climbed during the session after the group’s pre-tax profits jumped 16.4% to a higher-than-expected £102.6 million in the year to April 2.

Premier said its Mr Kipling cake brand enjoyed its best year ever in 2021, helping the overall sweet treats category post a 7% rise in revenues.

Shares in the food group were 10.8p higher at 117.4p at the end of play.

Darktrace slumped heavily after a senior director of the cyber security specialist was linked to the legal row over Autonomy’s sale to Hewlett Packard.

The Telegraph reported that Nicole Eagen, chief strategy officer at the firm, was investigated by the US Department of Justice for her role in the sale, according to a judgment from Mr Justice Hildyard.

The reports shook investors and pushed shares 57.8p lower to 323.2p at the close.

Pub group Marston’s slipped back after it said its brewing joint venture with Carlsberg is no longer expected to post a profit after being hit hard by rising commodity and electricity costs.

Shares in the hospitality group finished 4.5p lower at 58p.

The price of oil fell as reports in Beijing highlighting rising infection rates took the steam out of a recent rise driven by hopes of improving demand in China.

Brent crude decreased by 1.76% to 109.96 US dollars per barrel when the London markets closed.

The biggest risers on the FTSE 100 were Rolls-Royce, up 3.57p at 84.78p, British Land, up 15.8p at 522.4p, SSE, up 39.5p at 1,920p, Aviva, up 8.35p at 414p, and Land Securities, up 11.4p at 754p.

The biggest fallers of the day were Ocado, down 72.4p at 727.8p, Experian, down 150p at 2,519p, JD Sports, down 7.15p at 124.7p, B&M, down 25.1p at 440.7p, ad Croda International, down 326 at 6,524p.

Already a subscriber? Sign in