FTSE 100 up 0.6, FTSE 250 0.2

Oct 28 Reuters The UK39;s FTSE 100 edged up on Friday from near threemonth lows touched in the prior session, as gains in Reckitt Benckiser and oil stocks offset concerns about inflation sparked by Britain39;s budget.

The bluechip FTSE 100 rose 0.6 by 0954 GMT, with consumer goods company Reckitt surging 9 after company, along with U.S.based Abbott Labs, was cleared of liability in a preterm formula case.

Oil stocks such as Shell and BP rose more than 1 each as crude prices , climbed about 3 following reports Iran was preparing a retaliatory strike on Israel from Iraq in the coming days.

The midcap FTSE 250 index edged up 0.2, but hovered near a threemonth low trough touched on Thursday as Britain39;s finance minister, Rachel Reeves, faced criticism after her first budget was heavy on spending, tax increases, and borrowing but light on economic growth.

Both indexes were heading for weekly declines due to fears that Labour39;s spending plans could spur inflation, leading traders to reduce expectations of rate cuts next year.

However, investors anticipate a 25basispoint rate cut from the Bank of England next week.

An SP Global survey showed British factory activity contracted slightly last month for the first time since April, due to fewer new orders.

Focus is on U.S. payrolls data later in the day for clues on the size of rate cuts from the Federal Reserve, which is also set to meet next week.

Among other stocks, Tesco rose 1.5 after…