FTSE 100 down 0.2, FTSE 250 off 0.3
UK inflation holds at 2 vs estimated 1.9
Antofagasta expects copper output at lower end of forecast; shares tumble

July 17 Reuters London stocks inched lower on Wednesday, after strongerthanexpected domestic inflation data prompted investors to scale back bets for an August interest rate cut by the Bank of England.

The bluechip FTSE 100 index was down 0.1, as of 0735 GMT, falling for a third session. The midcap FTSE 250 dipped 0.2.

British consumer prices data showed that inflation held at 2, defying forecasts of a slight fall, adding to uncertainty around when the BoE would start its easing cycle.

The odds of a rate cut in August dropped to 33, from 49 before the data release. 0BOEWATCH

Yields on the 2year government bond edged higher, while the pound strengthened against the dollar, further dampening sentiment.

Investors wanted to see a figure below target to give them some cushion, and inflation coming in at target remains unconvincing, said Julian Howard, chief multiasset investment strategist at GAM Investments.

To actually cut rates, the BoE needs that additional level of certainty. There were some elements of the report which were quite disappointing, like the service inflation aspect.

Industrial metals miners weighed on the market with a 0.9 fall, dragged lower by Antofagasta, down 3.8, after the Chilean miner said it expects fullyear copper output at the lower end of its guidance range.

Losses were limited by the…