- Sunak set to present budget at 1230 GMT
- British inflation hits fresh 30-year high
- Reckitt down after Jefferies downgrade
- FTSE 100 up 0.5%, FTSE 250 adds 0.1%
March 23 (Reuters) - UK's FTSE 100 gained on Wednesday after hot inflation numbers put focus on finance minister Rishi Sunak's budget update later in the day, with investors looking for signs of support to ease the worst cost-of-living squeeze in decades.
The blue-chip FTSE 100 rose 0.5%, its sixth consecutive day of gains in what could be the longest winning streak since December 2020.
Oil majors BP and Shell provided the biggest boost to the FTSE, up over 3%, as crude prices rose on increasing concerns of global supply tightness from sanctions imposed on Russia.
Data showed British inflation shot up faster than expected in February to hit a new 30-year high of 6.2%, while the median forecast in a Reuters poll of economists had pointed to a reading of 5.9%.
"While inflation came in ahead of expectations, markets have recognised that inflation is on the up at least for the next few months," said Dan Boardman-Weston, chief investment officer at BRI Wealth Management.
The Bank of England last week raised interest rates for a third time in a row to combat surging inflation, but raised doubts about further hikes as the Ukraine crisis increases the risk of an economic downturn.
Sunak is due to give a budget update at around 1230 GMT.
"I think what we will see today is some measures, maybe a cut in fuel duty, some tinkering around with the tax rates at the lower end, but I don't think it will be anything too meaningful. He may want to keep some powder dry in case this crisis gets worse," added Boardman-Weston.
Consumer good giant Reckitt Benckiser Group fell 3.6% after Jefferies downgraded to "underperform."
The midcap index edged up 0.1%, with UK-listed shares of U.S. cruise operator Carnival Corp gaining 1.0% despite forecasting a loss for the year.
Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila and Uttaresh.V
Source: Reuters