London pre-open: Stocks to edge down as investors digest inflation data

The FTSE 100 was called to open six points lower at 7,570.

Figures out earlier from the Office for National Statistics showed that inflation hit 7% in March - its sharpest jump since 1992 - as energy and food prices surged. That was up from 6.2% in February and above analysts’ expectations of 6.7%.

ONS chief economist Grant Fitzner said: "Broad-based price rises saw annual inflation increase sharply again in March. Amongst the largest increases were petrol costs, with prices mostly collected before the recent cut in fuel duty, and furniture.

"Restaurants and hotel prices also rose steeply in March while, after falling a year ago, there were rises across a number of different types of food.

"The price of goods leaving UK factories has continued to rise substantially with metal and transport products both at record highs and food reaching its highest rate for over a decade.

"Raw material costs also rose, with a notable increase in the price of crude oil."

In corporate news, GlaxoSmithKline has agreed to buy Sierra Oncology, a US rare cancer therapy company, for $1.9bn (£1.5bn) in cash. The UK drug company said Sierra's treatment had the potential to meet unmet medical needs of myelofibrosis patients with anaemia.

Elsewhere, higher sales and lower costs related to the Covid pandemic saw UK retailer Tesco report soaring annual profits.

The company said pre-tax profits rose 219% to £2bn on sales of £54.7bn, excluding fuel, an increase of 2.5%. It also widened its adjusted operating profit range for the current year to £2.4bn - £2.6bn.

Aerospace firm Meggitt has disposed of its piezoelectric ceramic components manufacturing unit to CTS Ceramics Denmark A/S for £59.0m in cash, subject to net debt and working capital adjustments.

Meggitt said that the disposal of Meggitt A/S was consistent with its strategy of developing "sustainable and differentiated technologies" for its core end markets in aerospace, defence and energy. Cash proceeds will be paid on completion and be used to pay down debt and for general corporate purposes.