Aviva tumbles on lower net flows
Marks Spencer jumps to over oneyear high on FY outlook
Ocado to be moved from FTSE 100, shares fall
April CPI 8.7 vs 8.2 estimate
FTSE 100, FTSE 250 down 1.5 each

May 24 Reuters UK39;s main stock indexes fell to an over onemonth low on Wednesday, as a closely watched measure of core prices surged to a 31year high in April, cementing bets of further interest rate hikes by the Bank of England.

The exportfocussed FTSE 100 fell 1.5, hit by the riskoff mood in global markets on the U.S. debt deal uncertainty. The midcap FTSE 250 also shed 1.5.

The pound climbed after data showed April consumer inflation CPI eased to 8.7 but was above economists39; expectations, sparking fresh bets that the BoE would not budge from monetary tightening just yet.

Core inflation, which excludes energy, food and tobacco prices, and price growth in the services sectors both hit their highest rates since March 1992.

Services inflation gives a better read on underlying price pressures in the economy due to close links to the labour market, said Hugh Gimber, global market strategist at J.P. Morgan Asset Management.

Based on the current evidence, both investors and savers should be prepared for the prospect of 5 interest rates later in the year.

Offsetting the sombre mood, Marks Spencer Group Plc added 9.1 and hit a morethanayear high, as the retailer forecast a modest annual revenue growth and said it would resume its dividend with an interim payout in…