FTSE 100 down 1.2, FTSE 250 off 1.4
UK May yy inflation hits 9.1, highest since March 1982
UK extends trading plan to sell taxpayer stake in NatWest; stock shines

June 22 Reuters UK shares fell more than 1 on Wednesday after inflation in the country touched a 40yearhigh in May, adding further pressure on the Bank of England to raise interest rates, while falling crude and metals prices sent commoditylinked stocks tumbling.

The exporterheavy FTSE 100 index fell 1.2 despite weakness in the sterling , while the domesticallyfocussed midcap FTSE 250 index declined 1.4, erasing nearly all of this week39;s gains.

Soaring food prices pushed UK consumer price inflation to a new 40year high last month at 9.1 the highest rate out of G7 countries and underlining the severity of the costofliving crunch. 

The pressure is now on the Bank of England to apply much cooler compresses in the form of successive rate rises over the next few months to reduce demand and bring down prices, said Hargreaves Lansdown analyst Susannah Streeter.

The pound has slipped back against the dollar and worries are mounting that this could flame inflation further by making imported goods even more expensive.

UK39;s main indexes were on pace to end the month between 7 and 8 lower as investor confidence tumbles on rising worries about an impending recession.

The Bank of England last week announced a quarter point rate hike to 1.25 and said it was ready to act forcefully to stamp out inflation…