UK GDP Beats Forecasts as US Inflation Fuels Rate Hike Bets

The UK's GDP rose by 0.4% in July, beating expectations of no growth, according to figures from the Office for National Statistics.

This comes as investors were digesting the latest US inflation data, which showed a 3.4% annual increase in consumer prices, matching the consensus forecast and in line with July's reading.

The core inflation rate, which excludes volatile food and energy costs, eased to 2.4% in August from 2.5% in July, while month-on-month inflation rose to 0.4% in August from 0.1% in July.

National Westminster Group, Barclays, and Lion Finance Group were among the top risers on the FTSE 100 index, which closed up 0.4% at 10,650.44.