UK inflation rate rises to 4 in December
Antofagasta slides as outlook disappoints
888 Holdings slumps as forecast falls below est
FTSE 100 down 1.3, FTSE 250 off 1.6

Jan 17 Reuters The UK39;s FTSE 100 extended its earlyweek selloff on Wednesday after a strongerthanexpected inflation reading tempered expectations around sharp interest rate cuts this year, while underwhelming data from China hurt commoditylinked stocks.

The bluechip index, opens new tab fell 1.3, extending losses for a third straight session and hitting a oneandahalfmonth low.

Keeping the FTSE 100 under pressure, sterling edged up after data showed Britain39;s annual rate of consumer price inflation rose for the first time in 10 months in December, with a rise in tobacco duty behind the increase.

Consumer price inflation rose 4.0 last month, above economists39; estimates of a 3.8 increase.

The data dampened investors39; conviction that the Bank of England BOE will start cutting rates in May this year. Traders are pricing in a more than 50 chance the central bank will hold rates in May.

The rise in inflation delivers something of a wakeup call for investors who have been considering the BoE home and dry on getting inflation sustainably back to target, noted Victoria Clarke, UK chief economist at Santander CIB.

We maintain our view that the BoE will not be keen to cut too soon; we still have summer in for the first cut.

Shares of ratesensitive homebuilders, opens new tab and REITs opens new tab…