FTSE 100 Rises Amid Slowing Inflation and Upcoming Budget

The FTSE 100 index is trading up 0.24% leading into the budget update, while the midcap FTSE 250 index is having an even better day after a gain of 0.57% through the morning. This movement in the UK stock market comes as British inflation slowed more than anticipated in February, providing a brief relief to investors ahead of upcoming fiscal policies.

With the FTSE 250 a shade below 20,100, and the FTSE 100 butting up against 8,700, there are plenty watching to see how markets respond.

Economists remain cautious, warning that rising energy prices could soon reignite inflationary pressures. The ongoing adjustment in consumer prices keeps economists and investors on alert for future fluctuations that might impact economic stability.

Ahead of her budget update, scheduled for 1230 GMT, Finance Minister Rachel Reeves is faced with the task of addressing fiscal discipline. It is expected that Reeves will announce cuts to current spending plans in an effort to reassure investors about the UK's fiscal management. Reeves aims to maintain financial discipline while ensuring funding for key priorities, including defense.

In company news, Ocado's shares (LON: OCDO) led advancements in the midcap index, surging by an impressive 16.4%. Shell is again on the rise, up 1.86% to bring year-to-date gains to 11.46%.