London stocks drop as UK’s high inflation raises bets for BoE hike

April 19 (Reuters) – Britain’s FTSE 100 slipped on Wednesday, snapping an eight-day rally as consumer prices fell less than expected, boosting bets for one more rate hike from the Bank of England (BoE) at its May monetary policy meeting.

The blue-chip FTSE 100 fell 0.3%, while the mid-cap FTSE 250 was down 0.5%, as of 0708 GMT.

Data showed Britain now has Western Europe’s highest rate of consumer price inflation, after it fell by less than expected in March to 10.1% from February’s 10.4%.

Traders now see a 95.3% in a 25-basis-point hike in May, with interest rates peaking in November.

Leading declines, Antofagasta fell 2.7% after the Chilean miner’s copper output fell in the March quarter from the previous three months due to lower water availability and reduced ore grades.

Industrial miners were down 1.1%.

(Reporting by Shristi Achar A in Bengaluru; Editing by Rashmi Aich)