Big gains for FTSE

The FTSE 100 Index gained more than 1% today amid rising hopes that policymakers will hold off from tackling inflation with interest rate hikes.

A sharp rise in the cost of living to 3.3% in May was overshadowed by hints from Bank of England Governor Mervyn King that attempting to resolve the inflation spike from soaring oil and food prices in the next 12 months would cause "unnecessary volatility".