FTSE 100 today: Stocks slip as UK inflation quickens to 3.5%

On Wednesday, British stocks experienced a decline as UK inflation surpassed expectations, raising doubts about the Bank of England's interest rate hikes. The FTSE 100 fell by 0.24%, while Germany's DAX decreased by 0.16% and France's CAC 40 rose by 0.10%. The British pound depreciated by 0.02% to $1.3379. The Office for National Statistics reported that UK consumer prices increased to 3.5% in September from 3.1% in August, a figure that exceeded forecasts of 3.4% and marked the highest since October 2025.

Monthly price increases stood at 0.4%, in line with expectations of 0.3%, with core inflation matching predictions at 2.8%. The cost of petrol averaged 169.5 pence per liter, the highest level since August 2022.

The inflation data arrived ahead of the government's budget scheduled for October 28. U.S. Secretary of State Marco Rubio mentioned ongoing discussions with several countries regarding Iran, expressing hopes for mediation efforts, but emphasizing that any decisions would ultimately rest with the president. He added that achieving a deal is extremely challenging, and economic pressure would persist until Iran ceases targeting shipping in the Strait of Hormuz.

Meanwhile, Iran's Foreign Minister Abbas Araghchi stated that the strait would remain closed until Washington agrees to Tehran's conditions, with indirect talks ongoing through Pakistan and Qatar.

U.S. President Donald Trump addressed a rally, stating that the war would conclude swiftly, either by victory or defeat, resulting in a significant drop in oil prices. Prime Minister Andy Burnham revealed a suspected plot against RAF Fairford, believed to be orchestrated by Iran's Revolutionary Guard, prompting the police to re-arrest two individuals.

Brent futures experienced a 1.12% increase to $110.01 a barrel as traders considered potential shipping risks in the Red Sea and threats to Saudi oil infrastructure. U.S. crude oil also rose by 1.04% to $98.84. Gold futures, on the other hand, dropped by 0.24% to $4,132.55 per ounce, while spot gold declined by 0.25% to $4,115.23.