CPI up 10.1 in July vs est of 9.8 rise
Balfour Beatty boosts midcaps
Cineworld plunges to record low
FTSE 100 flat, FTSE 250 slips 0.2

Aug 17 Reuters UK39;s FTSE 100 was muted on Wednesday after data showed inflation hit double digits for the first time in four decades, raising chances of more aggressive moves by the Bank of England BoE to tame surging prices.

The bluechip index slipped 0.04, still holding near a 10week peak.

Official figures showed consumer price inflation jumped to a higherthanexpected 10.1 in July, its highest since February 1982, up from an annual rate of 9.4 in June. 

Traders have almost fully priced in chances of a half percentage point rate interest hike by the BoE in September.

UK39;s banking index rose 0.5, with Barclays and Natwest gaining about a percent as twoyear government bond yield surged to its highest since 2008.

In the last few weeks there has been better sentiment about the state of the economy and whether we can achieve a soft landing, and I think that has supported financials, said Kiran Ganesh, multi asset strategist at UBS.

The banking index has rallied almost 25 since hitting the year39;s low in March but remains 5.6 away from surpassing 2022 highs.

We remain constructive on the UK market in a backdrop of high commodity prices, while many largecap value and defensive names can perform well in the current macro environment, said Hussain Mehdi, investment strategist at HSBC Asset Management.

Drugmaker GSK slipped…