FTSE slides as UK inflation rate eases in August

<p>The FTSE 100 had decreased on disappointing inflation data.</p>

The FTSE 100 has slipped as the UK inflation rate – as measured by the Consumer Prices Index – dipped in August to 2.5 per cent, after July's 2.6 per cent.

This is according to the Office for National Statistics (ONS), which reported that the Retail Prices Index, taking into account property values, also lost ground to 2.9 per cent from 3.2 per cent.

Modest increases in furniture and gas prices were in part responsible for this fall, while the ONS said smaller boosts in the price of clothing also contributed to the fall in the rate of inflation.

The price rises recorded in July have been the largest on record, but the gauge has been steadily on the decline since peaking at 5.2 per cent in September 2011.

At 11:55 BST, the FTSE 100 was down 0.7 per cent – or 46.4 points – to an index value of 5847 points.

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