FTSE 100 Edges Higher: UK Inflation Rises, Burberry and Mining Shares Gain

The FTSE 100 rose 0.1% on Wednesday morning, outperforming a mixed European session. The DAX slipped 0.2%, the CAC 40 was flat and the STOXX 600 edged 0.1% lower.

UK inflation surprised to the upside, with annual consumer price growth rising to 3.4% in December. The increase exceeded both the prior month’s 3.2% reading and the 3.3% forecast, adding pressure to the Bank of England ahead of its next policy meeting.

Burberry was the standout performer after delivering a third-quarter update showing a 3% rise in comparable store sales for the three months to 27 December.

All regions were flat or positive for a second straight quarter, while sales in Greater China strengthened to 6%, doubling the pace of growth seen in the second quarter. The stock climbed 5.6%, making it the top FTSE 100 riser.

Mining shares also advanced as precious metals extended their rally. Spot gold is currently at $4,862, while spot silver is trading around $95.06. Rio Tinto gained 4.7%, Endeavour Mining rose 3.8% and Anglo American added 3.5%.

Elsewhere, JD Wetherspoon said half-year profits are set to fall compared with a year ago despite strong Christmas trading. Chairman Tim Martin added that if current sales momentum continues, full-year results may come in slightly below 2025 levels, though adjusted operating profit is expected to meet consensus forecasts.

JD Sports Fashion reported falling UK sales during the key festive period and warned of “muted” market growth ahead.

Experian was the biggest FTSE 100 faller, down 5.6%, after issuing a trading update with its outlook unchanged and organic revenue growth of 8% broadly in line.