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FTSE 100 Little Changed As Inflation Spikes

U.K. stocks were little changed on Wednesday and the pound spiked higher against its major counterparts after data showed that the nation's annual consumer inflation accelerated at the fastest pace on record in August.

Data from the Office for National Statistics showed that the consumer price index rose 3.2 percent year-on-year following a 2.0 percent climb in July. Economists had forecast 2.9 percent inflation.

The 1.2 percentage point increase was the largest ever recorded in the 12-month rate series that began in January 1997.

Output price inflation accelerated more than expected to the highest since 2011, raising questions for the Bank of England on the timing of tightening monetary policy and interest rate hikes.

Output price inflation increased to 5.9 percent in August from 5.1 percent in July. The rate was expected to climb moderately to 5.4 percent. This was the highest rate since November 2011.

The benchmark FTSE 100 was little changed at 7,037 after declining half a percent the previous day.

Oil & gas company Tullow Oil surged 6.7 percent after it swung back to profit in the first half of 2021.

Restaurant Group tumbled 3.5 percent after reporting lackluster results for the first half of the year.

Travel and leisure stocks declined, with IAG and EasyJet falling 3-4 percent.

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