London, April 22, 2026, 09:39 BST
- FTSE 100 hovered just shy of 10,500 as UK inflation ticked up to 3.3%.
- Reckitt and JD Sports dropped out of the gate, but miners and BP managed to curb some of the downside.
- Investors are now debating if the fuel-price shock is enough to push the Bank of England toward a more aggressive stance.
London equities wobbled on Wednesday, with the FTSE 100 hovering just below 10,500 as stubborn inflation data out of the UK and heavy selling in Reckitt wiped out early momentum. By 09:38 BST, the blue-chip index stood at 10,493.40, edging down 0.04% after a volatile start to the session.
This latest inflation reading landed at a tricky moment, as investors weigh whether the Bank of England can ignore the oil-fueled jump or if it has to keep rates higher for longer. The Office for National Statistics reported that the Consumer Prices Index climbed 3.3% year-on-year in March, compared to 3.0% in February. Motor fuel costs accounted for the largest push upward.
Stocks didn’t just slide across the board—action was mixed. Shares of companies tied to household spending and input costs took a hit. On the other hand, miners and oil-linked stocks found some traction, thanks to firming commodity prices and a softer outlook for some rate-sensitive names.
FTSE 100 ticked up by 9.25 points—just 0.1%—to 10,507.34 at the open, with the FTSE 250 and AIM both climbing 0.2%, according to Alliance News. That initial momentum didn’t last, though. Traders weighed the latest inflation numbers and a batch of uneven corporate reports.
Reckitt slumped nearly 5%, dragging on the index, with JD Sports posting a similar loss. Haleon edged lower too, as investors took a dim view of the consumer-health segment following Reckitt’s downbeat update. On the upside, Fresnillo, Rio Tinto, Antofagasta, and BP posted gains, cushioning the drop.
Reckitt posted a 1.3% increase in core like-for-like net revenue for the quarter, coming up short of the 2.9% figure analysts had penciled in according to a poll compiled by the company. The maker of Dettol and Durex flagged that its first-half adjusted operating profit margin is now expected to be about 200 basis points—two percentage points—lower than the 24.6% recorded this time last year. “While challenging to forecast, if commodity prices remain at significantly elevated levels throughout the year we would anticipate an impact on consumer demand,” Reckitt said. Reuters
JD Sports weighed on retail stocks following news that chairman Andrew Higginson is set to leave after the annual shareholders meeting on July 21. Darren Shapland will take over as interim chair during the search for a full-time replacement. Analysts described the move as unexpected, according to Reuters.
Fresh inflation figures kept traders wary. According to the ONS, petrol prices climbed 8.6 pence a litre from February to March, reaching 140.2p. Diesel surged even more, up 17.6p to 158.7p. Transport inflation nearly doubled to 4.7%. Services inflation—key for BoE policymakers focused on persistent price pressure—hit 4.5%.
Ruth Gregory, deputy chief UK economist at Capital Economics, expects inflation to “probably fall to 2.9% in April” once last year’s regulated-price hikes roll out of the annual figures. “But the next eight months will be an uncomfortable ride for the MPC,” she added, talking about the Bank of England’s Monetary Policy Committee. Reuters
Luke Bartholomew, Aberdeen’s deputy chief economist, pointed to softer labour markets and sluggish growth as factors that might dampen the fallout. “That should ultimately limit the size and extent of the coming inflation shock,” he said. Bartholomew expects the BoE to stick with a “wait-and-see mode” next week. AP News
Retail investors kept an eye on Associated British Foods after news that Primark, its key retail arm, is set for a spin-off from the food division. ABF flagged a concern this week: the ongoing Middle East conflict could weigh on spending. “There is a risk to Primark sales if the conflict persists and consumer spending deteriorates,” said Chief Executive George Weston. The Guardian
Markets may be misjudging just how long energy pressures could drag on. According to Investing.com, U.S. President Donald Trump has opted to keep a naval blockade around Iran even as he extends the ceasefire, leaving traders to parse whether cheaper oil will last or if supply problems will flare up again. Another jump in oil would give a lift to some of the FTSE’s energy and mining names, but it could also squeeze margins, household budgets, and hit rate-exposed stocks.
