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UPDATE 1-FTSE 100 falls as inflation concerns weigh

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* Boris Johnson to decide on easing in lockdown measures

* AstraZeneca falls after withdrawing cancer drug use

* IAG gains after a liquidity raise

* FTSE 100 down 0.7%, FTSE 250 off 0.8% (Adds comment, updates prices)

Feb 22 (Reuters) - London’s FTSE 100 fell on Monday as higher commodity prices sparked fears of a spike in inflation, while investors awaited Prime Minister Boris Johnson’s plan for a phased easing of business restrictions.

The blue-chip FTSE 100 fell 0.7%, led by declines in consumer staples and industrials stocks.

Oil heavyweights BP and Royal Dutch Shell dipped 0.1% and 0.4%, respectively, despite a rise in crude prices.

Johnson will plot a path out of COVID-19 lockdown on Monday in an effort to gradually reopen the battered $3 trillion economy, aided by one of the fastest vaccine rollouts in the world.

“Any inflation that’s coming will be affecting the supply chain with a grid-locked type scenario where you can’t get the goods you want,” said Keith Temperton, a sales trader at Forte Securities.

The FTSE 100 has recovered nearly 35% from its March 2020 lows and is nearly 13% away from its highest level last year, thanks to record stimulus measures and massive vaccine rollouts.

The mid-cap index fell 0.8%, with G4S Plc being the biggest drag on the index after Canada’s GardaWorld said it would not raise its offer, appearing to leave the way clear for the higher bid lodged by rival Allied Universal to succeed.

British Airways-owner IAG rose 1.4% after it said it raised total liquidity by 2.45 billion pounds ($3.4 billion) by reaching final agreement for a 2-billion-pound loan and through a deal to defer 450 million pounds of pension deficit contributions.

Pub operator Mitchells & Butlers rose 9.7% despite reporting a plunge in sales as all its sites were forced shut under the latest lockdown.

Drugmaker AstraZeneca fell 0.3% after voluntarily withdrawing the use of its cancer drug Imfinzi to treat advanced bladder cancer in the United States after it failed to meet post-approval requirements. (Reporting by Shivani Kumaresan in Bengaluru; editing by Uttaresh.V)

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