The FTSE 100 fell back from two-month highs in early trading, down 32 points to around 7,270.
Research from Kantar found that four-week grocery price inflation jumped to 14.7%, the highest since Kantar began tracking prices all the way back in 2008.
Meanwhile housebuilder Persimmon has reported an increase in cancellation rates and warned of falling house prices and margins in 2023.
IT consultants Aveva reported a 42% drop in underlying profits in what might be its last statement ahead of its takeover by Schneider Electric.
Primark owner ABF said it will not be implementing further price hikes at the clothing retailer for the upcoming year. The group also announced a £500mln share buy-back programme.
Poolbeg Pharma has said that its researchers have identified "multiple" drug targets for respiratory syncytial virus using artificial intelligence.
Empyrean Energy said that its development plan for the Mako gas project has been approved by the Indonesian Ministry of Energy and Mineral Resources.
And finally in education, UK teenagers will now be able to study for a BTEC in esports thanks to a new initiative by the David Beckham-backed company, Guild Esport, which has partnered with SCL Education to create what its calling the Guild College.