UK economy posts surprise growth in May
Risk averse mood prevails ahead of U.S. CPI
J D Wetherspoon heads towards March 2020 lows
FTSE 100 down 1.2, FTSE 250 off 0.6

July 13 Reuters UK39;s bluechip FTSE 100 fell more than 1 on Wednesday in a wider market selloff ahead of a crucial U.S. inflation data, with a surprise growth in Britain39;s economy failing to assuage recession worries.

The FTSE 100, which houses several global companies that draw a large part of their revenue in dollar, dropped 1.2 as sterling edged higher.

Data showed Britain39;s economy grew unexpectedly in May, driven by a rise in doctor appointments and demand for holidays, likely reassuring the Bank of England about its plans to keep on raising interest rates. 

The GDP figures are likely to get worse over the coming months as pressures continue to mount on consumers and businesses, Dan BoardmanWeston, chief investment officer at BRI Wealth Management said in a note.

The Bank of England is already predicting the chance of a recession but feels forced to raise interest rates to avoid inflation expectations becoming entrenched.

The wider European markets fell sharply ahead of U.S. data expected to show inflation hit a fresh 40year high, putting pressure on the Federal Reserve to hike rates aggressively.

The domestically focussed FTSE 250 index slipped 0.6, with pub operator J D Wetherspoon sliding 8.2 after it warned of losses this year due to higher labour and marketing costs.

Its shares…