UK stocks dipped after inflation hit 2.9% in July; Smith+Nephew shares slid following the departure of its finance chief.
London stocks edged lower on Wednesday as investors weighed higher UK inflation and corporate developments, with Smith+Nephew among the biggest decliners.
The blue-chip FTSE 100 fell 0.1% to 10,711.52 points by 0926 GMT, while the mid-cap FTSE 250 declined 0.3% to 24,483.70 points.
Data from the Office for National Statistics showed that UK inflation rose to 2.9% in July from 2.6% in June, reaching a four-month high. The increase was largely driven by a 13% rise in the household energy price cap set by Ofgem.
The inflation figure was in line with economists’ expectations but remained above the Bank of England’s 2% target. The data came a day after weaker labour market figures, reinforcing expectations that the central bank will keep interest rates unchanged at its September meeting.
Smith+Nephew shares fell 3.38% after the medical products maker said Chief Financial Officer John Rogers would leave the company on September 30 to take up an external role in the United States. Rogers has stepped down from the board with immediate effect, while the company has begun searching for a permanent successor.
The departure comes after about two and a half years in the role and weeks after Smith+Nephew lowered its full-year revenue growth forecast.
Oil stocks gained as crude prices climbed for a fourth consecutive session, with investors monitoring conflicting statements from Washington and Tehran over the status of shipping through the Strait of Hormuz.
Shell shares rose 0.7%, while BP gained 1.1%.
Global bond yields remained elevated as concerns over rising government debt kept borrowing costs high and continued to weigh on equity markets.
Trainline shares plunged 15.4% after Britain’s competition regulator launched an investigation into whether Trainline, Virgin Atlantic and RED Driving School were sufficiently transparent about total prices when customers made bookings.
Among mid-cap stocks, Ithaca Energy jumped 15.8% after raising its dividend forecast for 2026.
IG Group shares fell 2.7% after UBS cut its price target to 1,700 pence from 2,200 pence.