FTSE slides as trading knocked by rise in UK inflation
The IndependentFor free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. A consumer price index inflation reading of 9.1% was in line with expectations for May, but rocketing producer prices showed inflationary woes are not likely to reverse any time soon. Michael Hewson, chief market analyst at CMC Markets UK, said: “The fragile nature of this week’s rebound has been laid bare today, with a sharp slide in oil prices in Asia, spilling over into broader market weakness, with the Dax sliding below last week’s lows, before rebounding, while the FTSE has also slipped back sharply. “Today’s inflation numbers from the UK came across as rather mixed in the same way as the US inflation numbers a couple of weeks ago, with core prices softening, however PPI prices continued to push higher, suggesting that there is still a lot of price pressure still in the pipeline.” Concerns over these pressures in the production sector weighed on commodity stocks, pulling Glencore, Antofagasta and the oil majors lower.