London’s FTSE 100 gained on Tuesday, helped by a sharp fall in shop price inflation. Elsewhere, drinks giant Diageo and retailer Pets at Home missed earnings expectations.
The bluechip index jumped 0.49 per cent to 7,670.11, while the FTSE 250, which is more aligned with the health of the UK economy, rose 0.37 per cent to 19,382.12.
A new reading by the British Retail Consortium showed shop price inflation has fallen to its lowest level since May 2022, helped by supermarkets continually slashing their prices.
Shop price inflation eased to 2.9 per cent in January, down from 4.3 per cent in December.
Food inflation also decelerated to 6.1 per cent down slightly from the prior month, and is the lowest level since June 2022.
Investors are looking ahead to the Bank of England’s next Monetary Policy Committee meeting on Thursday, where policymakers are expected to leave interest rates on hold for the fourth time in a row as the UK economy teeters on the brink of recession.
The US Federal Reserve is also expected to leave rates on hold this week, but traders will be looking for any signs…
