London pre-open: Stocks seen muted as investors mull inflation data

The FTSE 100 was called to open just two points higher at 7,611.

Figures released earlier by the Office for National Statistics showed that inflation hit a 30-year high in January. Consumer price inflation rose to 5.5% from 5.4% in December, coming in above expectations for no change.

ONS chief economist Grant Fitzner said: "Clothing and footwear pushed inflation up this month and although there were still the traditional price drops, it was the smallest January fall since 1990, with fewer sales than last year."

ING said: "Another upside surprise to UK inflation will help cement expectations for another 25 basis point rate hike from the Bank of England in both March and May. That might be more-or-less it though, and markets are likely overestimating the amount of tightening required this year."

In corporate news, Primary Health Properties lifted its dividend as it unveiled a rise in annual earnings, driven by demand for facilities to catch up on the backlog of delayed operations due to the Covid pandemic.

The company posted adjusted earnings of £83.2m, up 13.8% on a 4.2% increase in net rental income to £136.7m. The dividend was increased to 6.2p a share from 5.8p.

Drugmaker AstraZeneca revealed that Saphnelo had received European Union approval as an add-on therapy for the treatment of adult patients with moderate-to-severe, active autoantibody-positive systemic lupus erythematosus.

AstraZeneca said the European Commission's approval of Saphnelo, the first biologic for SLE approved in Europe with an indication that was not restricted to patients with a high degree of disease activity, was based on results from the drug's clinical development programme, including its TULIP Phase III trials and the MUSE Phase II trial.

Indivior said it was considering a US listing for its shares as the drugs company swung to an annual profit and predicted strong growth for its Sublocade opioid.

Net income for the year to the end of December was $205m compared with a $148m loss a year earlier as net revenue rose 22% to $791m. The company reported $35m net income for the fourth quarter compared with a $13m year-earlier loss. Indivior said it expected net income of $840m-$900m in 2022 based on sales of Sublocade of $360m-$400m - a 56% increase at the midpoint.

The FTSE 250 group also said it would consult shareholders about an additional listing for its shares in the US, where it makes about 80% of revenue.