By Reuters

(Reuters) - UK shares rose marginally on Wednesday after softer-than-expected April inflation offered relief to investors, though sceptics warned the reprieve ‌would be temporary.

The blue-chip FTSE 100 index gained 0.13% as ‌of 10:40 am GMT, while the midcap FTSE 250 climbed 0.29%.

• Consumer prices in April rose ​by an annual rate of 2.8%, compared with March's figures of 3.3% and expectations of 3.0%.

That prompted some analysts to question the need for rapid rate hikes by the Bank of England, especially as data released on Tuesday ‌also showed the unemployment ⁠rate ticking up.

• "We continue to think markets are overestimating the Bank of England's willingness to tighten policy," said James Smith, ⁠developed markets economist, UK, at ING.

• On Monday, the International Monetary Fund had also said that the central bank may not need to raise rates to get ​inflation ​down to its target.

• Still, others warned ​that inflation may tick up ‌in the coming months as the impact of higher oil prices due to disruption in the Strait of Hormuz flows through.

• "Some people might be scratching their heads that the headline inflation figure for April came in at just 2.8%. But this bright spot is set to be relegated to the ‌past in the months to come," said ​Danni Hewson, head of financial analysis at AJ ​Bell.

• Aerospace and defence stocks ​rose 1.6%, thanks to a 3.2% gain in shares of ‌defence contractor Babcock International Group after ​Peel Hunt upgraded ​the stock to "buy" from "add".

• Retailer Marks & Spencer rose 4.2% and was the biggest gainer on the FTSE 100 after forecasting it will return ​to profit growth this ‌year.

• Investors are also contending with a noisy political backdrop, as ​questions about Prime Minister Keir Starmer's future persist.

(Reporting by Niket Nishant ​in Bengaluru; Editing by Vijay Kishore)

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