FTSE 100 Set for Gains Ahead of UK Inflation Data and Iran Conflict Costs
London's FTSE 100 index is expected to open higher on Wednesday, buoyed by optimism ahead of UK inflation data and a US Federal Reserve interest rate decision. The index is forecast to rise by 0.3% at the opening bell, according to IG futures.
The data release from the UK Office for National Statistics (ONS) is expected to show consumer price inflation accelerating to 3.1% on an annual basis in August, up from 2.9% in July. Meanwhile, producer input prices are forecast to have risen by 0.4% month-on-month, following a 1.7% decline in July.
The conflict with Iran has added to market volatility, with the US military's costs estimated at around $38 billion as of August 1, according to the Congressional Budget Office (CBO). The CBO also warned that these costs could rise by an additional $2-3 billion per month if the conflict continues.