---
title: "UK shares edge higher as benign inflation data reassures investors"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287054188.md"
description: "UK shares saw a slight increase, with the FTSE 100 up 0.13% and the FTSE 250 up 0.29%, following lower-than-expected April inflation at 2.8%. Analysts debate the necessity of rapid rate hikes by the Bank of England, while some caution that inflation may rise again due to higher oil prices. Notable stock movements included a 1.6% rise in aerospace and defense stocks and a 4.2% increase for Marks & Spencer, which anticipates profit growth this year."
datetime: "2026-05-20T10:59:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287054188.md)
  - [en](https://longbridge.com/en/news/287054188.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287054188.md)
---

# UK shares edge higher as benign inflation data reassures investors

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window)

May 20 (Reuters) - UK shares rose marginally on Wednesday after softer-than-expected April inflation offered relief to investors, though sceptics warned the reprieve would be temporary.

The blue-chip FTSE 100 index gained 0.13% as of 10:40 am GMT, while the midcap FTSE 250 climbed 0.29%.

\* Consumer prices in April rose by an annual rate of 2.8%, compared with March's figures of 3.3% and expectations of 3.0%.

\* That prompted some analysts to question the need for rapid rate hikes by the Bank of England, especially as data released on Tuesday also showed the unemployment rate ticking up.

\* "We continue to think markets are overestimating the Bank of England's willingness to tighten policy," said James Smith, developed markets economist, UK, at ING.

\* On Monday, the International ​Monetary Fund had also said that the central bank may not need to raise rates to get inflation down to its target.

\* Still, others warned that inflation may tick up in the coming months as the impact of higher oil prices due to disruption in the Strait of Hormuz flows through.

\* "Some people might be scratching their heads that the headline inflation figure for April came in at just 2.8%. But this bright spot is set to be relegated to the past in the months to come," said Danni Hewson, head of financial analysis at AJ Bell.

\* Aerospace and defence stocks rose 1.6%, thanks to a 3.2% gain in shares of defence contractor Babcock International Group ( BCKIF ) after Peel Hunt upgraded the stock to "buy" from "add".

\* Retailer Marks & Spencer rose 4.2% and was the biggest gainer on the FTSE 100 after forecasting it will return to profit growth this year.

\* Investors are also contending with a noisy political backdrop, as questions about Prime Minister Keir Starmer's future persist. (Reporting by Niket Nishant in Bengaluru; Editing by Vijay Kishore)

### Related Stocks

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