The FTSE 100, a major UK stock market index, closed down 10.47 points, or 0.1%, at 10,811.66, as Bank of England Governor Andrew Bailey highlighted concerns over rising inflation, particularly due to high energy prices. The FTSE 250, which includes mid-sized UK companies, fell 157.83 points, or 0.6%, to 24,348.85, while the AIM all-share index, which tracks smaller UK-based companies, dropped 2.38 points, or 0.3%, to 796.75. In Europe, the CAC 40 in Paris rose slightly by 0.1%, while the DAX 40 in Frankfurt dipped by 0.1%. Bailey and other members of the Monetary Policy Committee met with MPs at Parliament’s Treasury Committee to discuss key economic issues, including inflation, interest rates, and the broader economic outlook in the UK. He noted that current market expectations of three Bank of England rate increases over the next year seem reasonable, given the risk of rising global inflation. Bailey also warned that energy prices could climb further due to tensions in the Middle East, such as the US-Iran conflict, and the ongoing Russia-Ukraine war. At the time of the London stock close on Tuesday, Brent crude oil was priced at $98.00 per barrel, up slightly from the previous day. Despite a strong first-half performance, including a near doubling of profit and a 72% jump in revenue, Computacenter, a tech services provider, fell 9.0% on the FTSE 100. The company had seen a significant rise in its shares earlier in the day. Meanwhile, BP and Shell both gained around 0.5% to 0.7% as oil prices rose, and miners like Antofagasta and Glencore climbed by 4.7% and 4.1%, respectively, benefiting from high copper prices. Other notable movements included a 23% drop in Goodwin’s shares after reports of a potential £1 billion takeover of its defense unit by Cerberus. Dunelm, a home furnishings retailer, fell 14% despite reporting a slight revenue increase, citing the impact of unusually hot weather on sales. In contrast, smaller companies like GreenRoc Strategic Materials and Renalytix saw significant gains, while Cambridge Nutritional Sciences dropped 24% after reporting a pre-tax loss. The pound rose slightly against the dollar and euro, while the US dollar weakened against the Japanese yen. In the US, major stock indices like the Dow Jones and S&P 500 were lower, with bond yields rising.