A man wearing a protective face mask walks past the London Stock Exchange Group building in the City of London’s financial district as UK stocks tumble as investors fear the coronavirus outbreak will bring the global economy to a standstill, at London, Britain, March 9, 2020. REUTERS/Toby Melville

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  • Tesco profit warning drags retailers down
  • FTSE 100 adds 0.1%, FTSE 250 loses 0.1%

April 13 (Reuters) – Britain’s midcaps fell on Wednesday after data showed annual inflation last month hit a three-decade high, intensifying the cost of living pressure facing households and affecting the profits of supermarket businesses like Tesco.

The domestically focused FTSE 250 index (.FTMC) ended down 0.1%, extending its year-to-date loss to 10.7% on concerns over the economic outlook due to rising price pressures.

Britain’s consumer price inflation (CPI) jumped to 7% in March, stronger than the expected 6.7% rise, and is raising doubts about the Bank’s aggressiveness. England to tighten monetary policy. Read more

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The core CPI, which excludes food, energy, alcohol and tobacco prices, rose to 5.7% last month from 5.2% in February.

“Inflation is now everywhere. Price increases are broad-based and gaining momentum…we believe this will deflect the conversation from the more dovish policy message of March,” said Deutsche Bank’s senior economist, Sanjay Raja, in a note.

“The intensification of the cost of living crisis will only add to recession risks in the UK, which we believe the MPC (monetary policy committee) will be watching closely as we enter Q2-2022. .”

Tesco (TSCO.L) tumbled 2% to weigh the most on the FTSE 100 after Britain’s biggest retailer warned of lower profits this financial year due to tough economic conditions and pressure on consumers. Read more

Shares of rivals Sainsbury’s (SBRY.L), Marks and Spencer (MKS.L) and Ocado Group (OCDO.L) slipped between 2.1% and 2.6%.

The FTSE 100 (.FTSE) edged up 0.1%, with oil major Shell (SHEL.L) and miners Glencore (GLEN.L) and Anglo American (AAL.L) advancing between 0.7% and 1%. .2%.

A jump in the pound in the wake of inflation data also capped gains for the blue-chip index, home to big dollar-earning companies like Diageo (DGE.L).

British Airways parent IAG (ICAG.L) rose 3.8% to top the FTSE 100 index. Its US counterpart Delta Air Lines (DAL.N) said robust demand not only helped it post a “solid” profit in March, but also enabled the carrier to offset soaring fuel costs with higher fares. Read more

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Reporting by Devik Jain in Bengaluru; edited by Uttaresh.V, Subhranshu Sahu, William Maclean

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