UK Inflation Rises to 3.8% as FTSE 100 Hits Record High
The FTSE 100 index closed at 9,288.14, a new all-time high, after rising 1.1% despite UK inflation rising to 3.8% in July and fading hopes for rate cuts. The index traded as high as 9,301.19. UK consumer price inflation increased to 3.8% annually from 3.6% in June, with core inflation rising to 3.8% and service inflation hitting 5.0%. The pound weakened against the dollar and euro, while technology stocks faced losses on Wall Street following a report that 95% of companies get zero return on AI investments. House prices rose 3.7% in the UK, with significant gains in Scotland and Northern Ireland. ConvaTec and United Utilities were top gainers on the FTSE 100, while Polar Capital Technology Trust and Scottish Mortgage Investment Trust fell.