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

The FTSE 100 was called to open 42 points higher at 6,978.

Figures released earlier by the Office for National Statistics showed that higher food prices helped push up inflation in September to a record 10.1%.

The consumer price index rose by 10.1% in the 12 months to September, compared to August’s rate of 9.9%. The figure was largely in line with expectations.

On a monthly basis, CPI rose by 0.5% in September, compared to 0.3% in September 2021.

The ONS said that rising food prices made the largest upward contribution to the change in both CPIH and CPI. The largest downward pressure was transport, as the price of motor fuels and second-hand cars continued to fall.

Inflation has been mounting throughout the year, hitting a 40-year high of 10.1% in July before easing slightly to 9.9%.

In corporate news, electronics manufacturer Spectris reiterated full year like-for-like sales growth guidance on Wednesday, citing "continued strong demand" for its products.

Spectris said sales were up 10% on a like-for-like basis in both the third quarter and the year to date, underpinning expectations for "high single digit organic sales growth" for the full year.

Online fashion retailer ASOS announced a review of its business after swinging to a full-year loss and said it would write off up to £130m in excess stock amid the cost-of-living crisis.

The company posted a pre-tax loss of £32m from a profit of £177m and said trading at the start of the new fiscal year had been volatile.

It guided for a loss in the first half driven by “elevated” markdown to clear stock resulting from the change in commercial model.