After yesterday’s big sell-off the FTSE 100 was flat on Wednesday morning as UK inflation numbers came in broadly as expected.
AJ Bell investment director Russ Mould said: “The record wage growth revealed on Tuesday created fears that inflation is becoming increasingly entrenched in the UK economy and beyond the headline number there were signs rising prices are getting quite sticky in this latest CPI print.
“The Bank of England may be glad of the breathing space provided by the scheduling of its next meeting which does not come until late September. This will allow it to look at a few more data points before deciding its next move on interest rates. One thing is absolutely certain – the battle against inflation is far from over.
“Overnight US stocks were lower thanks to concerns about the banking sector, while Asian indices continued to suffer in the fall-out from a Chinese property market crisis.”