FTSE 100 Live: Stocks rise but oil tops $95; inflation eases
Welcome back to the City PM FTSE 100 liveblog.
It’s Wednesday and new Chancellor John Healey secured an early boost after the Office for National Statistics (ONS) revealed that inflation slowed in June.
Headline CPI inflation dipped from 2.8 per cent in May to 2.6 per cent in June.
Grant Fitzner, chief economist at the ONS, said: “A fall in motor fuel prices, particularly diesel, helped ease inflation in June. Food prices fell this month, driven by products including chocolate, margarine and beef.”
But fresh tensions between the US and Iran have sent oil prices back up, so the easing of inflation revealed today could be fleeting.
Thomas Pugh, chief economist at RSM UK, said falling oil prices after the interim ceasefire agreement will be the “main drag on inflation in June”.
“However, oil prices have rebounded in July as tensions escalate which means inflation is still likely to peak at around 3.4 per cent in November,” he said.
He cautioned that food prices could “rebound later this year, as higher energy and fertiliser prices due to the conflict in the Middle East make their way through supply chains”.
An inflation boost would be welcome for Burnham, whose first full day as Prime Minister was rocked by a row over his plans to fund a cut to VAT on electricity bills using the money saved by scrapping Digital ID.
Critics – including sacked Starmer ally Darren Jones – claimed that this money doesn’t exist because the Digital ID plans were yet to be funded.
We’ll be bringing you the latest market updates and analysis as the day develops.
This morning’s top stories:
- 10:33am: FTSE 100 roars despite earlier losses
- 9:20am: Reach shares plummet amid digital headache
- 8:17am: Santander profit slumps on £180m motor finance hit
- 7:56am: Lucy Rigby back as City Minister
- 7:13am: June inflation falls to 2.6 per cent but analysts say rises ahead