FTSE slides after US inflation jumps to highest level since 2008

The FTSE 100 opened down nearly 1% at 5,695.22 after overseas markets dived in reaction to US inflation figures showing a surprise jump to 3.6% in May. The U.S. Bureau of Labor Statistics said that core inflation, which excludes energy and food costs, also rose by 0.3% in May alone, the biggest jump since July 2008. Inflation in the US has shot ahead of expectations, having been as low as 1.1% in November. US markets retreated in the wake of the figure, with the S&P 500 down 1.7% overnight, at 1,265.42, and the Dow Jones off 1.5% at 11,897.3.