BUSINESS CLOSE: FTSE 100 slumps 1.2%

The London stock markets slumped into the red today as a toxic combination of soaring energy prices, inflation fears and anxiety over the Chinese economy prompted traders to sell off shares. 

After falling almost 2 per cent, the FTSE 100 closed down 1.2 per cent to 6,995.87, while the FTSE 250 ended the day down 1.5 per cent to 22,386.62. 

Inflation is set to cost the typical British family of four an extra £1,800 by the end of this year, while a retired couple can expect to see living costs rise by more than £1,100, and a lower income couple could be stung by nearly £900.

Bosses have reacted furiously to the Prime Minister’s ‘buck-passing’ over inflation after he dismissed fears over spiking inflation and supply chain chaos, saying it is not his job to fix all the problems.

Boris Johnson is set to hike the minimum wage to £9.42 an hour in a bid to steer the country away from the ‘broken’ model of a low-wage, low-growth economy. 

Britain’s biggest retailer Tesco has raised its full-year outlook after reporting a 16.6 per cent rise in first-half core retail profits and increased sales.

Despite labour and supply chain disruption, Tesco forecast a full-year adjusted retail operating profit of between £2.5billion and £2.6billion.

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