The FTSE 100 suffered its worst day in seven weeks amid continuing fears over the British economy, with the FTSE 100 down 1.05% at 7,284.1 and the FTSE 250 down by 0.45% at 19,063.7, as lower oil prices offered solace to U.S. investors but were outweighed by inflation fears in Europe.
Further warnings over soaring inflation in 2023 were the main bugbear for investors once again, with the FTSE 100 index slumping 2% in August in total.
New figures from the British Retail Consortium added to investor woes, with shop price inflation jumping to 5.1% in August, the highest figure since records began in 2005 and up from 4.4% in July.
Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said:
“Mounting cost pressures up and down supply chains meant shop price inflation hit a new high in August. The war in Ukraine, and consequent rise in the price of animal feed, fertiliser, wheat and vegetable oils continued to push up food prices. The rise in shop prices is playing into wider UK inflation, which some analysts are predicting could top 18% in 2023.”
British supermarket giant Sainsbury’s (GB:SBRY) is to spend £65 million on maintaining food prices in coming months, with £60 million going towards food prices in September.
Retailers were among stocks which gained on Wednesday, with J.D. Sports (GB:JD) rising 2.1% at 115p while oil stocks slumped on news of lower prices, with Shell (GB:SHEL) down 3% at 2267p.
British business news today
UK pound posts worst month since Brexit referendum (FT)
‘Shock and awe’ budget can preserve jobs says Make UK (The Times)
Pound sinks to two-year low amid fears of ‘deep, dark’ recession (Telegraph)
