U.K. stocks drifted lower on Wednesday after data showed British inflation rose a little more than expected in January, adding to concerns over rising bond yields.
U.K. consumer price inflation rose slightly to 0.7 percent from 0.6 percent in December, data from the Office for National Statistics showed. The rate was forecast to remain stable at 0.6 percent.
Month-on-month, consumer prices dropped 0.2 percent after rising 0.3 percent a month ago. Prices were forecast to ease 0.4 percent.
The benchmark FTSE 100 fell 23 points, or 0.3 percent, to 6,725 after closing 0.1 percent lower in the previous session.
Rio Tinto shares surged 4.1 percent. The miner rewarded investors with the biggest dividend in its history after reporting its biggest annual profit in nine years.
British American Tobacco slumped 5.5 percent. The cigarette manufacturing company said it expects a continuing impact from the coronavirus pandemic this year. Shares of Imperial Brands fell over 1 percent.
Signature Aviation dropped half a percent. The company has reached agreement to sell its Engine Repair and Overhaul to StandardAero.
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