"Surprise Inflation Spike Boosts UK Sterling and Mortgage Concerns"

UK's headline and core measures of inflation surprised to the upside, with the headline measure rising to 4% and the core measure remaining at 5.1%, beating forecasts. Temporary price pressures are unlikely to challenge the Bank of England's resolve, with energy costs plummeting and services inflation remaining a concern. The pound sterling rose in response to the elevated inflation numbers, while the FTSE opened lower amidst global geopolitical tensions and cooling expectations around interest rate cuts for 2024.