UK’s FTSE 100 index opened higher following softer inflation data for May, while the pound edged above $1.34.
The Office for National Statistics reported headline consumer price inflation slowed to 3.4% in May (from April’s 3.5%), largely driven by easing transport costs—such as lower fuel prices and reduced airfares. Core inflation, which strips out volatile items like food and energy, also improved, falling to 3.5%
Investors welcomed the softer inflation figures, boosting hopes that the Bank of England may delay further interest rate hikes. As a result, the FTSE 100 climbed approximately 20 points early in the session, reaching around 8,854 . Meanwhile, the pound appreciated, rising about 0.3% to $1.3462 amid renewed confidence in UK economic stability
This positive shift in market sentiment is set against a backdrop of escalating Middle East tensions and the upcoming Federal Reserve policy meeting, both of which are adding complexity to investor outlooks.
