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FTSE 100 drops as commodity stocks weigh, inflation doubles; John Laing shines | Reuters

London’s FTSE 100 slipped on Wednesday, dragged down by heavyweight commodity stocks, while a bigger-than-expected jump in inflation stoked fears that the central bank may tighten its monetary policy earlier than expected.

The blue-chip index fell 1.1%, with miners declining 2.7% on lower metal prices. Oil majors BP and Royal Dutch Shell slipped 1.8% each, tracking crude prices.

The domestically focussed mid-cap FTSE 250 index slid 0.5%.

Official figures showed British consumer price inflation more than doubled in April to stand at 1.5%, helped by a jump in regulated electricity and gas bills and higher clothing prices.

A Reuters poll of economists had pointed to a rise in inflation to 1.4%.

Ferguson climbed 4.1% to hit a record high after the plumbing and heating parts distributor reported a 65.4% jump in its third-quarter profit.

John Laing Group jumped 11.1% after private-equity firm KKR agreed to buy the British infrastructure investor in a deal valued at about 2 billion pounds ($2.84 billion). Reporting by Devik Jain in Bengaluru; Editing by Subhranshu Sahu

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