* FTSE 100 down 0.8%, FTSE 250 off 0.5%
London’s FTSE 100 index fell to its lowest level in a month on Monday, led by weakness in heavyweight mining and travel stocks, with investors weighing inflation concerns ahead of economic data and Bank of England’s rate decision later in the week.
The blue-chip index UK100 dropped 0.8% to its lowest since May 19. Travel stocks .FTNMX405010 fell the most, down nearly 7.5%, while miners .FTNMX551020 declined 1.7%.
Data last week showed Britain’s inflation surged past its central bank’s target in May, compared with the previous year, raising concerns that the Bank of England could pull back its monetary support later this week.
Britain’s top central bank officials look set to remain divided this week over whether to pull the plug on their 875 billion-pound ($1.2 trillion) government bond purchase programme.
The domestically focussed mid-cap index .FTMC fell 0.5%
Among stocks, supermarket chain Morrisons MRW surged 29.8% as U.S. private equity firm Clayton, Dubilier & Rice (CD&R) is set to push ahead with its takeover pursuit.
Outsourcer Capita CPI gained 0.4% after it said it was on track to post revenue growth for the first time in six years and agreed to sell its 51% stake in Axelos, a joint venture with the UK Cabinet Office.