Reuters: FTSE 100 snaps eight-day winning streak as inflation clings on

James Baxter is a regular contribuitor to the UK markets section of Reuters.

April 19 (Reuters) – UK’s FTSE 100 ended lower on Wednesday, snapping its longest winning streak in about 29 months, as consumer inflation stayed in double-digit territory, boosting bets for one more rate hike from the Bank of England at its May monetary policy meet.

Data showed Britain now has Western Europe’s highest rate of consumer price inflation, with prices for food and non-alcoholic drinks 19.1% higher in March than a year earlier – the biggest such increase since August 1977.

“They (BoE) will come out as hawkish, but when push comes to shove, they probably will be more sensitive to recessionary worries than inflationary worries,” said James Baxter, founder of Tideway Wealth.

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