By Carla Mozee, MarketWatch Rise in computer game prices helps
lift U.K. inflation
LONDON (MarketWatch) -- U.K. stocks rose Tuesday, with gains for
Prudential PLC and British Land Co. PLC following trading updates,
while the pound advanced against the dollar on an increase in U.K.
inflation.
Inflation in the U.K. rose by 1.3% in October, compared with
1.2% in September, according to data released by the Office for
National Statistics. That beat expectations for inflation to come
in at 1.2%. The rise sprung in part from smaller declines in costs
for motor fuels and airfares from the year-ago period, the ONS
said.
Markets: The pound (GBPUSD) rose to $1.5666 from $1.5643 ahead
of the data. Sterling traded at $1.5650 late Monday.
The FTSE 100 index rose 0.5% to 6,704.13, adding to Monday's
rise of 0.3%, when the market turned higher on the prospect of
further monetary stimulus for the eurozone from the European
Central Bank.
Prudential shares climbed 1% after the insurer said profit from
new business rose 17% in the third quarter and that it's confident
about its prospects for the rest of the year.
British Land shares gained 0.8% as the property developer said
first-half profit rose on strong demand for commercial real estate
in London. Underlying profit before tax rose 6.2% to 155 million
pounds ($242.7 million).
Meanwhile, EasyJet PLC said full-year profit rose 22%, aided in
part by strikes at rival carriers, but shares were off 0.7%.
Inflation report: While the inflation rate in October moved
higher, it's still below the Bank of England's target of 2%. The
recent jump in prices appears to be "a blip, and the downward trend
in inflation will continue for the medium-term," said Kathleen
Brooks, a research director at Forex.com, in a note. If the "trend
of weaker food and energy prices continues then we could see
further declines in CPI in the coming months," she said.
The ONS noted that the headline October reading also moved
higher as prices for computer games increased. "The latest
installment of the smash hit 'Call of Duty' was released last
month, which may have added to the upward pressure on prices," said
Brooks.
"Call of Duty: Advanced Warfare" from Activision held the
top-selling position in the U.K. during the week ended Nov. 15,
according to market research firm Chart-Track.
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