Ratesensitive homebuilders, real estate lead gains
Currys jumps after upbeat annual profit outlook
FTSE 100 up 0.7, FTSE 250 adds 1.5

Jan 15 Reuters British equities jumped on Wednesday, with the economicallysensitive midcap index rising more than 1, after data showed British inflation unexpectedly slowed in December and core measures of price growth fell more sharply.

The bluechip FTSE 100 added 0.7 as of 0842 GMT, outpacing European peers, while the FTSE 250 midcap index jumped 1.5.

The annual rate of inflation eased to 2.5 in December from 2.6 in November, while core inflation, which excludes energy, food, alcohol and tobacco prices, fell to 3.2 from 3.5.

The Bank of England will likely feel emboldened to continue its easing cycle in February. And rate cut expectations further out should ease on the back of today39;s data, said Sanjay Raja, Deutsche Bank39;s chief UK economist.

Traders currently see a more than 82 of the BoE cutting interest rates in February, and about 50 basis points of easing by the end of the year, as per LSEG data.

British government bond yields, meanwhile, moved away from multidecade highs. The yield on the 30year gilt , which stood at its highest since 1998, eased to 5.42.

Utilities, often traded as a bond proxy owing to their steady income regardless of the economic situation, were up 1.5.

Ratesensitive homebuilders led gains among the major FTSE sectors, jumping 4. Real estate advanced 2.2, while real estate investment trusts…