Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
The optimism in equity markets in London faded on Wednesday, with stocks pulled back as consumer inflation in the UK was hotter than expected.
The FTSE 100 index closed down 11.75 points, or 0.2%, at 6,924.99. The FTSE 250 ended down a heftier 281.76 points, or 1.6%, at 17,247.55. The AIM All-Share lost 9.51 points, or 1.2%, at 785.97.
The Cboe UK 100 closed 0.2% lower at 692.60, the Cboe UK 250 fell 1.5% to 14,806.44, and the Cboe Small Companies closed 0.7% lower at 12,369.96.
In European equities on Wednesday afternoon, the CAC 40 in Paris lost 0.4%, and the DAX 40 in Frankfurt gave back 0.2%.
The pound fell to $1.1242 Wednesday evening from $1.1291 late Tuesday.
New data showed consumer inflation in the UK was shoved back into double digits in September, which turns the spotlight firmly onto the Bank of England.
The consumer price index rose by 10.1% in September from a year before, according to the Office for National Statistics. The inflation rate picked up from 9.9% in August and returned to the same rate as recorded in July.
The latest figure came in marginally hotter-than-expected, with a reading of 10% expected, according to FXStreet.
AJ Bell's Danni Hewson said stretching household budgets to cover the "basic necessities of life has become harder and harder".
"Cutbacks have already been made. Big name brands ditched for value lines in the weekly food shop, thermostats have been dialled down, non-essential journeys put off or abandoned altogether," she continued.
"The fact that food and energy costs were the main drivers for September‘