FTSE 100 gains as UK inflation outlook shows improvement
The FTSE 100 closed slightly higher on Friday as a Bank of England survey suggested businesses expect smaller price increases despite the ongoing conflict in the Middle East. While house prices fell unexpectedly in May, gains in pharma and personal care stocks helped the blue-chip index buck a wider global market downturn.
The FTSE 100 rose 0.07% on Friday as easing energy price concerns offset broader global market volatility. The blue-chip index outperformed the FTSE 250, which fell 1% to snap a two-week winning streak. The performance comes as a Bank of England survey suggests cooling price pressures may allow British policymakers to pause interest rate hikes.
### Inflationary Pressures Ease as Energy Shock Fades British businesses expect to raise prices at a slower pace than in April as the initial energy shock tied to the war involving Iran begins to subside. A Bank of England survey of over 2,000 companies showed 57% of firms plan price increases, a 7 percentage point drop from the previous month.
