Inflation hits three‑year high as Nobel economics prize awarded, FTSE nudges up 0.5%

UK inflation pressures hit a three‑year high on a morning that also saw a Nobel economics prize handed out. The data gave the City a modest lift: the FTSE 100 ticked up 53 points, a tidy half‑percent gain, settling at 10,604.

Banking shares led the rally, with HSBC climbing 2.1% and Standard Chartered edging up 1.8%.

The market’s modest rise felt a bit like a polite nod rather than a full‑blown celebration – the kind of gentle smile you might imagine a tweed‑clad trader giving while watching the numbers.

In the background, sterling stayed largely unchanged, and investors seemed content to let the numbers do the talking, leaving the only thing that truly rose to be the price of a decent cup of tea.