FTSE 100 up 0.7, FTMC 250 up 0.3
British inflation at 1.7 in September
Quilter rises after Q3 results

Oct 16 Reuters The UK39;s main stock indexes jumped on Wednesday after a key inflation reading showed British inflation fell more than expected, boosting the case for a rate cut by the Bank of England.

The bluechip FTSE 100 rose 0.7 by 0719 GMT, while the midcap FTSE 250 index gained 0.3. Both indexes hit more than oneweek highs.

Precious metal miners led sectoral gains, rising 2.1 in tandem with gold prices that ticked up 0.2.

The ratesensitive real estate sector ticked up 1.3.

Consumer price index data showed British inflation fell morethanexpected to an annual rate of 1.7 in September from 2.2 in August. A Reuters poll had expected CPI to drop to 1.9.

The pound fell 0.6 to the dollar, also acting as a tailwind for British equities.

Investors currently see about an 81 chance the Bank of England will cut rates at its next meeting on Nov. 7.

Today39;s inflation print will reassure members of the Monetary Policy Committee that the tide is turning in the battle against inflation, Aaron Hussein, global market strategist at J.P. Morgan Asset Management, said.

A quarterly cadence of cuts appears most likely. Investors expecting the Bank to keep pace with its peers around the world are therefore likely to be disappointed.

Nonlife insurers lost 1.7 after the Financial Conduct Authority began a review of the premium finance market, amid fears that consumers who…