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FTSE dips after UK inflation comes in below expectations

by LLB Reporter
14th Dec 22 11:46 am

We may not be out of the woods yet but there will have been an audible sigh of relief on Threadneedle Street this morning as UK inflation figures followed the trend set in the US on Tuesday and came in below expectations.

Prices are still seeing double-digit increases and, in some areas, inflationary pressures are proving worryingly sticky – notably food.

AJ Bell investment director Russ Mould said: “However, we seem to be past the peak or at least close to that point and this probably confirms there won’t need to be a repeat of November’s record-breaking 75 basis point rise when the Bank of England meets tomorrow.

“Tonight’s rates decision from the US Federal Reserve remains finely poised but a less aggressive rate hike seems likely – the FTSE 100 dipped a little this morning as investors remain in ‘wait and see’ mode ahead of the decision.

“Housebuilders acted as a drag on the index, suggesting worries about the housing market and the impact of higher borrowing costs on demand persist.”

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