FTSE 100 hits record high as cooling UK inflation boosts hopes for March rate cut

British consumer inflation slowed to 3.0% in January, according to the Office for National Statistics. This reading, which represents the weakest inflation level in nearly a year, has had a significant impact across the United Kingdom GB. The report immediately increased market-implied odds of a near-term interest-rate cut, with pricing now reflecting almost an 80% chance of a March reduction.

In response to the data, the FTSE 100 reached an intraday record high, while the FTSE 250 hit a four-year high. These market moves underscore the immediate national reaction to the inflation print and its direct influence on equity valuations. While the focus remained on domestic figures, market participants also monitored the broader international landscape, including the United States US and Iran IR.