FTSE 100 Rises as Shop Price Inflation Eases in UK

London's FTSE 100 index is expected to open slightly higher on Tuesday, according to futures data from IG. The UK shop price inflation rate eased in September, with annual inflation falling to 1.4% from 1.5% in August, although it remains above the three-month average of 1.3%. Retailers continued to absorb 'wave after wave of extra costs', said Helen Dickinson, Chief Executive of the British Retail Consortium.

UK shop price inflation was driven by a fall in food prices due to competition among retailers, but fruit prices rose due to poor European harvests and global commodity prices kept chocolate and confectionery prices high. The Reserve Bank of Australia raised interest rates by 25 basis points as expected, with the cash rate target increasing to 4.6% from 4.35%. The RBA cited rising energy prices and inflationary pressures in its decision.