The FTSE 100 fell today amid concerns over Britain’s inflation rate.

Barclays economists issued a research note saying that they no longer expected a June interest rate cut.

The bank said: “The tone from [Bank of England] policymakers since May’s decision [to cut rates] has been decidedly cautious.”

It predicted a quarterly pace to cuts, with changes in August and November this year.

Traders are currently fully pricing in one quarter of a percentage point cut to rates by the end of the year.

Ben Seager-Scott, chief investment officer at Forvis Mazars, said: “The passage of the US tax cutting bill brings into sharp contrast the fact that the UK has no room to deploy fiscal stimulus whilst yesterday’s worse-than-expected jump in inflation points to more potential pain for UK consumers and makes interest rate cuts less likely.

“Added to that, the purchasing managers indices for the UK are still pointing to a contraction in activity. So plenty to worry about for UK equity investors.”

Rory McPherson, chief investment officer at Wren Sterling, said the FTSE 100 was being weighed down the market as traders priced in “a less aggressive pace of UK interest rate cuts following yesterday’s higher than expected inflation”.

It came as oil stocks were subdued by expectations that the oil cartel Opec+ will boost production.

Brent Crude, the global benchmark price for oil, fell 1pc to just over $64 (£48) a barrel.

Helima Croft, of RBC Capital Markets, told Bloomberg: “We think the most likely outcome is another headline increase of 411,000 barrels a day from July, which will be primarily Saudi barrels.”

The FTSE 100 closed down 0.5pc, having lost as much as 1.1pc.

The biggest faller was fuel distributor DCC, which lost 4.9pc. BP dropped 1.5pc and Shell 1.4pc.

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Adidas and Puma are likely to follow Nike in hiking prices for running shoes in the United States, analysts said on Thursday, as US tariffs on imports drive costs up for retailers.

Nike on Wednesday said it would raise prices next week, charging up to $10 more for shoes currently costing more than $150, while keeping prices stable for products under $100. It is the biggest sportswear company by sales.

“That was the moment Adidas and Puma were waiting for,” said Robert Krankowski, sporting goods analyst at UBS.

Both German sportswear brands recently said they would not be the first movers in raising prices, instead waiting to see what rivals do.