FTSE 100 Set to Open Higher on Modest Shop-Price Inflation Easing

The UK's FTSE 100 index is poised to open marginally higher on Tuesday, following a slight easing in shop-price inflation and investors digesting an anticipated interest-rate hike from the Reserve Bank of Australia.

FTSE 100 futures indicate an opening around 8 points, or 0.1%, higher at 10,691, after the blue-chip index slipped 0.1% to 10,684.88 on Monday.

The British Retail Consortium and NielsenIQ reported that UK shop-price inflation slowed to 1.4% in September from 1.5% in August, although it remained above the three-month average of 1.3%. The decrease was attributed to food inflation easing as supermarket competition and promotions helped reduce some meat and dairy prices.

However, poor European harvests and elevated global commodity costs continued to exert upward pressure on fruit, chocolate, and confectionery prices, keeping overall inflation above the three-month average.