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Burberry, commodity stocks drag FTSE 100 lower; inflation woes linger

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* FTSE 100 down 1.3%, FTSE 250 off 0.8%

May 13 (Reuters) - London’s FTSE 100 fell on Thursday, dragged down by heavyweight commodity stocks and Burberry Group after an underwhelming earnings update, while fears of a pickup in inflation as the economy recovers hurt demand for equities.

The blue-chip index slipped 1.3%, giving up the previous session’s gains. Luxury brand Burberry tumbled 8.1% to the bottom of the index after it reported a 10% drop in annual sales, impacted by store closures and reduced tourism due to COVID-19.

Oil majors BP and Royal Dutch Shell, and miners were among the biggest drag to the index on lower oil and commodity prices.

The domestically focussed mid-cap FTSE 250 index declined 0.8%.

Globally, stocks slipped after a shocking rise in U.S. inflation bludgeoned Wall Street and sent bond yields surging on worries the Federal Reserve might have to move early on tightening.

BT Group, Britain’s biggest broadband and mobile provider, slid 4.2% after it reported a 7% fall in revenue and a 6% drop in adjusted earnings for the year to end-March, and forecast adjusted revenue to be broadly flat this year. (Reporting by Devik Jain in Bengaluru; Editing by Subhranshu Sahu)

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