STOCK London UK economy
The blue-chip FTSE 100 climbed 0.6 per cent to its highest since June 29. Image Credit: Bloomberg

UK’s top share index hit a three-week high on Wednesday, lifted by oil and mining stocks, as investors bet on a bigger than usual interest rate hike by the Bank of England next month after data showed inflation hit a fresh 40-year high.

The blue-chip FTSE 100 climbed 0.6 per cent to its highest since June 29, with commodity-linked stocks such as Shell, BP and Rio Tinto providing the biggest boost.

British consumer prices surged in June to hit an annual rate of 9.4 per cent, the highest rate since early 1982, official figures showed, boosting chances of a 50 basis point (bps) rate hike in August.

Advertising firm WPP gained 2.7 per cent after US rival Omnicom Group reported stronger-than-expected quarterly results.

The domestically focused midcap index rose 0.3 per cent, also hitting its highest in three weeks.

Royal Mail dipped 2.9 per cent after the post and parcel delivery firm reported a 11.5 per cent drop in its quarterly revenue in its UK arm, hurt by a decline in its letters business and inflation-hit consumers cutting back on online shopping.

Morses Club tumbled 41.1 per cent after the subprime lender said it was pursuing a potential use of the so-called scheme of arrangement to deal with the high levels of redress claims that threaten to jeopardise its future.