London pre-open: Stocks seen muted as investors mull inflation data
London stocks were set for a muted start on Wednesday as investors mulled the latest UK inflation figures.
The FTSE 100 was called to open unchanged at 7,909.
Data released earlier by the Office for National Statistics showed that inflation declined less than expected in March.
Consumer price inflation fell to 10.1% from 10.4% in February, but this was above economists’ expectations of a decline to 9.8%. The key driver of inflation was food and non-alcoholic drinks inflation, which rose by 19.2% in March.
ONS chief economist Grant Fitzner said: "The main drivers of the decline were motor fuel prices and heating oil costs, both of which fell after sharp rises at the same time last year.
"Clothing, furniture and household goods prices increased, but more slowly than a year ago.
"However, these were partially offset by the cost of food, which is still climbing steeply, with bread and cereal price inflation at a record high.
"The overall costs facing business have been largely stable since last summer, although prices remain high."
In corporate news, metals miner Antofagasta held annual production guidance despite quarter-on-quarter falls in copper and gold output.
Copper production fell by 25.4% compared with the final three months of 2022 to 145,900 tonnes, in line with guidance, and 5.1% higher year on year.
The decrease was due to the expected temporary reduction in throughput at the Los Pelambres mine on lower water availability, and expected lower grades and scheduled maintenance at Centinela. Production is expected to increase through the rest of the year, the company said.
Gold production fell 24.8% quarter on quarter to 42,200, but 9.9% higher annually due mainly due the scheduled maintenance and expected lower grades at the company’s Centinela operation.
Elsewhere, Redde Northgate said full-year adjusted pre-tax profit was likely to be ahead of market consensus and around the top end of the consensus range of £149.6m to £164.4m following a continued strong performance across the business.
"The group continues to perform well and is trading ahead of expectations, with strong and resilient demand from customers for services across both vehicle rental and accident management, including growth from major insurance contracts launched over the past 12 months," it said.