FTSE disappoints after inflation rate rise

The FTSE shed 22.8 points to 4823.9 points, afters the annual consumer-price inflation increased to 1.6%, from 1.5% in November, the National Office of Statistics announced, fuelling further speculation of a hike in the interest rate next month. Supermarket giant Tesco also fell 9.50p to 313.75p, even though the firm recorded a 7.5% increase in sales over the Christmas period, because its performance had failed to impress analysts. Catering firm, Compass Group shed 6.50p to 238.50p, after analysts dropped its share rating. Cairn Energy, meanwhile, performed well, adding 52p or 4.7% to...