By Devik Jain
(Reuters) -London's FTSE 100 rose on Wednesday, rebounding from a 2% fall in the previous session, as commodity stocks gained, while shares of Just Eat (LON:JE) Takeaway.com slipped to the bottom of the index following Uber (NYSE:UBER) Eats' plan to foray into the German market.
The blue-chip index rose 0.6%, with oil majors BP (LON:BP) Plc and Royal Dutch Shell (LON:RDSa) adding 2.0% and 1.7%, respectively, after Azerbaijan's energy ministry said BP's oil output was 5.9 million tonnes in the first quarter.
The domestically focussed mid-cap FTSE 250 index added 0.3%.
Just Eat Takeaway.com fell 4.2% after a media report about rival Uber Eats' plan to start a food delivery service in Germany.
Markets appeared to shrug off data that showed British consumer price inflation rose to 0.7% in March, reflecting higher fuel and clothing prices, while prices charged by manufacturers rose by 1.9% in the year to March, the highest in nearly two years.
The Bank of England had forecast in February that inflation would reach 1.9% by the end of 2021 but many economists now expect it will exceed its 2% target before then.
"For the Bank of England ... the fact that inflation is likely to rise this year while the economic outlook is improving suggests little imminent need to look at negative interest rates," said James Smith, an economist at ING.
"However, the less exciting inflation story for 2022 suggests policymakers will be in little rush to tighten policy, which we don't expect to happen before 2023."
The FTSE 100 has gained 6.7% year-to-date on optimism about a speedy economic recovery from the pandemic-driven recession, although sentiment has been dented on concerns that central banks would tighten monetary policy sooner than expected on prospects of rising inflation.
Among other stocks, generic medicine maker Hikma Pharmaceuticals (LON:HIK) gained 2.6% after U.S. resumption of generic drug Advair.
British Airways owner IAG (LON:ICAG) jumped 3.4% to the top of FTSE 100 index, after a more than 8% fall in the previous session, as Barclays (LON:BARC) raised its price target on the stock.