FTSE 100 Live: Stocks soar as Trump claims ‘victory’ in Iran; Economists clash on inflation
Good morning and welcome back to the City AM liveblog.
Fresh figures this morning revealed inflation rose three per cent in the year to February 2026, unchanged from the 12 months to January 2026.
Grant Fitzner said: “The largest upwards driver was the price of clothing, which rose this month but fell a year ago.
“This was offset by falls in petrol costs with prices collected before the start of the conflict in the Middle East and subsequent rise in crude oil prices.”
The figure, whilst down over the last year, still stood well above the Bank of England’s two per cent target.
But it may likely be taken with a pinch of salt in regards to cutting interest rates, with the period covering prior to the conflict in the Middle East which have sparked fears of an energy crisis.
The Bank of England’s chief economist said on Tuesday interest rates can “contain” inflation as he vowed to act against the damaging effects of the war in Iran.
Huw Pill, a member of the Bank’s Monetary Policy Committee, said he was focused on getting price growth down to two per cent in the medium term, adding that “uncertainty” was not an excuse policymakers should use.
Pill, who is one of the most hawkish members on the MPC, said he would look to use interest rates as a tool to support the UK economy if inflation surges as a result of a prolonged war and further disruption across the Strait of Hormuz.
The surging price of gas and oil has stoked fears of inflation with the Bank warning that an oil price around $100, combined with elevated gas prices, could push inflation to 3.5 per cent later this year, well above its two per cent target.
We’ll be bringing you the latest on this and more.
Here’s a few of our top stories from the weekend:
- RAC could jump-start London’s IPO engine with bumper £5bn float
- Janus Henderson bidding war heats up as Trian and General Catalyst raises offer
- Bank of England chief economist: Interest rates can ‘contain’ inflation
- HMRC rejects nearly half of digital tax exemptions
- Iran war: Staff at hedge fund Millennium weigh swapping Dubai for Jersey
- UK economy facing ‘pronounced recession’
- Crispin Odey tells court sacked receptionist was ‘dismissed for being a flirt’